Interest rates express the value of money over time, and are a function of inflation and supply/demand of capital. In US markets, short-term interest rates - such as the one-month interest rate - are almost wholly dependent on where the Fed Open Markets Committee (FOMC) sets its overnight lending rate, known as "Fed Funds". The FOMC meets about every six weeks to raise or lower interest rates depending on the path of the economy and inflationary/deflationary pressure. For example, after September 11th, the FOMC met to "ease" interest rates (i.e., lower them) to stimulate borrowing and spending. During the tech boom, when the economy was hot and speculation rife, the FOMC was "tightening" money (aka "hiking" rates) by raising its target interest rate and therefore increasing borrowing costs. The FOMC target rate, and expectations for future FOMC rate moves, drive the short end of the yield curve. Long-term interest rates are also responsive to Fed policy, but are more dependent on supply/demand dynamics as well as longer term rate expectations. If, for example, people expect a lot of inflation (i.e., the value of a dollar erodes rapidly over time), long-term interest rates will be high. In recent years, pension investment and overseas demand for USD bonds have kept long-term rates relatively low. Because the FOMC sets interest rates in response to economic and inflationary conditions, and because longer term investment decisions are dependent upon those factors, you tend to see short-term and long-term interest rates move in the same direction.
Monetary policy will never be effective if interest rates: not respond to a change in the money supply, and investment spending does not respond to changes in the interest rate.
the cost of borrowing money
The change in the interest rate due to a change in the price level.
higher interest rate
Yes. lower interest rate causes more people and companies to borrow money, which leads to increased consumtion.
Summer
Interest groups affect agencies by trying to change the way their implementing policies economically. They also work together to make policies and pass laws.
Fixed interest means that the interest on a loan or deposit does not change as the result of market fluctuations.
simple
Variable
because its your home page and only you can change it
It automatically adds interest to your account every month.
Fixed interest means that the interest on a loan or deposit does not change as the result of market fluctuations.
Open interest and volume are inter-related. A change in the open interest and volume will usually be accompanied by a change in price saying that the market is ready to move forward or retrace to a lower level.
the cost of borrowing money
The present value of a bond's payment
The Renaissance is the age of great change marked by renewed interest in classical learning and the arts.