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How is interest rate determined ? |
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Answer»
ᴛʜᴇ ɪɴᴛᴇʀᴇsᴛ ʀᴀᴛᴇ ᴄʜᴀʀɢᴇᴅ ʙʏ ʙᴀɴᴋs ɪs ᴅᴇᴛᴇʀᴍɪɴᴇᴅ ʙʏ ᴀ ɴᴜᴍʙᴇʀ ᴏғ ғᴀᴄᴛᴏʀs, sᴜᴄʜ ᴀs ᴛʜᴇ sᴛᴀᴛᴇ ᴏғ ᴛʜᴇ ᴇᴄᴏɴᴏᴍʏ. ᴀ ᴄᴏᴜɴᴛʀʏ's ᴄᴇɴᴛʀᴀʟ ʙᴀɴᴋ sᴇᴛs ᴛʜᴇ ɪɴᴛᴇʀᴇsᴛ ʀᴀᴛᴇ, ᴡʜɪᴄʜ ᴇᴀᴄʜ ʙᴀɴᴋ ᴜsᴇ ᴛᴏ ᴅᴇᴛᴇʀᴍɪɴᴇ ᴛʜᴇ ᴀᴘʀ ʀᴀɴɢᴇ ᴛʜᴇʏ ᴏғғᴇʀ. ᴡʜᴇɴ ᴛʜᴇ ᴄᴇɴᴛʀᴀʟ ʙᴀɴᴋ sᴇᴛs ɪɴᴛᴇʀᴇsᴛ ʀᴀᴛᴇs ᴀᴛ ᴀ ʜɪɢʜ ʟᴇᴠᴇʟ, ᴛʜᴇ ᴄᴏsᴛ ᴏғ ᴅᴇʙᴛ ʀɪsᴇs
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