WHO HAS AUTHORITY TO SET INTEREST RATES LENDING ACTIVITIES FOR THE NATIONS BANKS?

Answer 1

In most countries, the authority to set interest rates for lending activities of national banks typically lies with the central bank. For example, in the United States, the Federal Reserve determines the federal funds rate, which influences lending rates across the banking system. Similarly, other countries have their own central banks, such as the European Central Bank or the Bank of England, that set benchmark rates to guide monetary policy and control inflation. These rates ultimately affect the interest rates banks offer to consumers and businesses.