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Effects of Falling Interest Rates

The document discusses the effects of falling interest rates on various economic indicators like GDP growth, stock markets, CPI, and bond yields. It notes that lower interest rates can positively impact spending, investment, and asset prices by increasing them, but can also negatively impact savings and potentially increase inflation. The presentation examines the relationships between interest rates and these economic indicators, and explores the ongoing debate around interest rate levels.

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Mayur Somvanshi
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50 views12 pages

Effects of Falling Interest Rates

The document discusses the effects of falling interest rates on various economic indicators like GDP growth, stock markets, CPI, and bond yields. It notes that lower interest rates can positively impact spending, investment, and asset prices by increasing them, but can also negatively impact savings and potentially increase inflation. The presentation examines the relationships between interest rates and these economic indicators, and explores the ongoing debate around interest rate levels.

Uploaded by

Mayur Somvanshi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

KNOWLEDGE SHARING SESSION - FINSTREET

EFFECTS OF FALLING
INTEREST RATES
interest rates
Repo rates
Reverse Repo rates
Lending rate MCLR
Monetary policy committee
INTEREST RATE
TADE OFF
GROWTH Vs INFLATION
Falling interest rates
Positives Negatives

Spending Increases Demotivates Saving

Investment increases Fixed Mortgage Payments

Asset prices increases Inflation increases


Interest Rates
Interest rates Vs GDP growth rate
Interest rates Vs Stock markets
Interest rates Vs CPI
Interest rates Vs Bond Yields
Why the debate on interest rates?
Thank You

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