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What factors determine interest rates?

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Question added by Amjed Mehboob , G.M -(Currently Job Seeking ) , Advance Education centre
Date Posted: 2016/04/19
Nuridin Islam Diab
by Nuridin Islam Diab , Training Manager , Bbusinesss LLE

From the factors that determine interest rate:

The central bank's decision to encourage investments

The economic shrinking / recession which usually brings interest rates down

The economic prosperity which makes capital competitive and raises interest rates up

Rami Assaf
by Rami Assaf , loading and Storage Operations Supervisor , Arab Potash Company

Thanks for the invitation

 

 I agree with the answer by Mr.Nuridin Islam Diab

Ahmed Mohamed Ayesh Sarkhi
by Ahmed Mohamed Ayesh Sarkhi , Shared Services Supervisor , Saudi Musheera Co. Ltd.

Inflation

expensive

cost

net income

 

TARIG BABIKER AL AMIN
by TARIG BABIKER AL AMIN , Head of Planning and Studies Unit , Sudanese Free Zones and Markets Co.

As interest rates are a major factor of the income you can earn by lending money, of bond pricing and of the amount you will have to pay to borrow money, it is important that you understand how prevailing interest rates change: primarily by the forces of supply and demand, which are also affected by inflation and Government polices

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