How does interest rates affect businesses.

[Niyi]

I use to hear people say that the interest rate fixed by the Fed in a particular country has effects on the macroeconomy and also in business.

I want to ask, how does interest rates affect businesses?

 

[Iboro]

Interest rates affect businesses because it makes securing funding very difficult. And that has negative impacts on the economy.

 

[Salt]

I think it has to be the bank lending rates so when banks increase the lending rates then it gets expensive for businesses to acquire funds

 

[Good-Person]

I think it has to be the bank lending rates so when banks increase the lending rates then it gets expensive for businesses to acquire funds

Interest rates may have a bad effect on the businesses. Businesses have to pay a huge sum of interest money and this is why I never recommend loans.

 

[Salt]

They always play a major role and just imagine the Bank lending rates in USA affects the prices of Gold in India

 

[Good-Person]

When the federal reserve increases the interest rates, the stock market suffers a lot. This is why people always monitor the policies of federal reserve all the time.

 

[Salt]

This all is connected and that's why I am trying to learn all these things that can increase or decrease the prices of shares

 

[Bisolami]

I think it has to be the bank lending rates so when banks increase the lending rates then it gets expensive for businesses to acquire funds

This is why a lot of people do not like to borrow from lending companies because of high interest rate.

 

[Salt]

They still need to borrow as there are not many other means from which they can get money for the establishment of their businesses