{"id":26112,"date":"2013-05-18T13:23:01","date_gmt":"2013-05-18T07:53:01","guid":{"rendered":"http:\/\/vskills.in\/certification\/tutorial\/?p=26112"},"modified":"2024-04-12T14:18:33","modified_gmt":"2024-04-12T08:48:33","slug":"factors-affecting-interest-rate-change","status":"publish","type":"page","link":"https:\/\/www.vskills.in\/certification\/tutorial\/factors-affecting-interest-rate-change\/","title":{"rendered":"Factors Affecting Interest Rate Change"},"content":{"rendered":"\n
\"Factors<\/a><\/figure><\/div>\n\n\n

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Factors Affecting Interest Rate Change- An\u00a0interest rate is a cost of borrowing money. Or, on the other side of the coin, it is the compensation for the service and risk of lending money. In\u00a0both cases it keeps the economy moving by\u00a0encouraging\u00a0people to borrow, to lend, and to spend.\u00a0But prevailing interest rates are always changing, and different types of loans offer different\u00a0interest rates. If you are a lender, a borrower, or both, it’s important you understand the reasons for these changes and differences.\u200b They also have a heavy effect on the rare metals trade, including\u00a0silver stocks.<\/p>\n

Interest rate levels are a factor of the supply and demand of credit: an increase in the demand for money or credit will raise interest rates, while a decrease in the demand for credit will decrease them. Conversely, an increase in the supply of credit will reduce interest rates while a decrease in the supply of credit will increase them.<\/p>\n

Various economic forces affect the level and direction of interest rates in the economy. Inflation is one of the most influential forces on interest rates.
Interest rates usually climb when the economy is growing, and fall during economic downturns.<\/p>\n