interest rate decisions

Interest rate decisions are made by a country's central bank to influence the economy. When rates are lowered, borrowing becomes cheaper, encouraging spending and investment, which can boost economic growth. Conversely, raising rates makes borrowing more expensive, helping to cool down inflation and stabilize prices. Central banks analyze various economic indicators, such as inflation rates and employment levels, to determine the most appropriate rate. These decisions impact loans, savings, and overall economic activity, affecting households and businesses alike.