What impact do interest rates have on the global economy?

What impact do interest rates have on the global economy?

Interest rates influence borrowing costs, consumer spending, and investment, which can affect economic growth globally.

Can you explain how central banks use interest rates to control inflation?

Central banks raise interest rates to make borrowing more expensive, which can reduce spending and help control inflation.

What happens to currency values when interest rates change?

When interest rates rise, a country's currency often strengthens as higher rates attract foreign investment.

Are there any recent examples of interest rate changes affecting the global economy?

Yes, recent rate hikes by the Federal Reserve have influenced global markets, leading to fluctuations in stock prices and currencies.

How do interest rates affect everyday consumers?

Higher interest rates can lead to increased loan costs for consumers, affecting mortgages, credit cards, and personal loans.