Who sets the interest rate? In America, the Federal Reserve, the national rates. In Canada, the Bank of Canada sets the target for the overnight rate. The Bank of England is the UK equivalent to the Federal Reserve and the Bank of Canada. The Federal Reserve and the Bank of Canada set rates eight times a year, and the Bank of England sets rates 12 times a year.
The target overnight rate set is a 0.5% margin, if the 4.25 to 4.75%, this means that banks 4.75% interest on money they borrow charge to other banks, and they will 4 25% tax on money deposited by other banks.
Each individual bank offers separate rates for different types of accounts. Banks choose their rates based on national rates.
What affects the interest rate?
The rates will be increased in the short term during expansions (when the economy is growing) to avoid. To the rise in inflation Inflation is when you circulates too much money, and so it takes more money purchases. For example, if a lot of money is created, without regulation, and interest rates are not adjusted to compensate, hypothetically, funds will be essentially worthless. (Picture peasants in Russia with buckets rubles try to buy a living.)
The government lowers interest rates when the economy is not so good. Lowering interest rates stimulates the economy because it encourages people to spend their money. It encourages them to borrow (for more money in circulation), and it discourages them to invest because their investments are not overly large returns will not make money.
Canadian interest rate pegged to the U.S., but they are not the same. Canada would interest other than the States, but the Canadian interest rates will be affected by the change in U.S. interest rates.
How does the interest for me? When interest rates are high, as a consumer, this is a good time to invest money. It means that you will make the money you choose to invest more profit. Unfortunately, however, if the interest is high, it is not a good time to borrow money. It means that you will have to pay more in interest, which often means a longer loan period.
Having low interest rates means that it is not a good time to invest money. You will not be a high return on money you invest. Low interest rates, however, are what you want, when to borrow money because it means that you have to pay in the long run will have less money back.
What are the current trends in the market?
From 2006 there seems to be an upward trend in interest rates are. In 2004, the rate hit a forty year low. They are slowly but steadily rising since then. The Bank of Canada has raised interest rates at least nine times since the lowest point in 2004, and the U.S. Federal Reserve has at least sixteen increases since that time.
Because, in 2006, it seems that the interest rates will rise, this is a good time to get before the cost is priceless. A fixed rate loan
Morgan James is editor at
The guide for Loans is an independent informational website dedicated to helping people understand how to effectively use their finances.
This site provides information on the financing of your life, such as personal loans, credit cards, mortgages and home improvement loans, and more financial information.
The target overnight rate set is a 0.5% margin, if the 4.25 to 4.75%, this means that banks 4.75% interest on money they borrow charge to other banks, and they will 4 25% tax on money deposited by other banks.
Each individual bank offers separate rates for different types of accounts. Banks choose their rates based on national rates.
What affects the interest rate?
The rates will be increased in the short term during expansions (when the economy is growing) to avoid. To the rise in inflation Inflation is when you circulates too much money, and so it takes more money purchases. For example, if a lot of money is created, without regulation, and interest rates are not adjusted to compensate, hypothetically, funds will be essentially worthless. (Picture peasants in Russia with buckets rubles try to buy a living.)
The government lowers interest rates when the economy is not so good. Lowering interest rates stimulates the economy because it encourages people to spend their money. It encourages them to borrow (for more money in circulation), and it discourages them to invest because their investments are not overly large returns will not make money.
Canadian interest rate pegged to the U.S., but they are not the same. Canada would interest other than the States, but the Canadian interest rates will be affected by the change in U.S. interest rates.
How does the interest for me? When interest rates are high, as a consumer, this is a good time to invest money. It means that you will make the money you choose to invest more profit. Unfortunately, however, if the interest is high, it is not a good time to borrow money. It means that you will have to pay more in interest, which often means a longer loan period.
Having low interest rates means that it is not a good time to invest money. You will not be a high return on money you invest. Low interest rates, however, are what you want, when to borrow money because it means that you have to pay in the long run will have less money back.
What are the current trends in the market?
From 2006 there seems to be an upward trend in interest rates are. In 2004, the rate hit a forty year low. They are slowly but steadily rising since then. The Bank of Canada has raised interest rates at least nine times since the lowest point in 2004, and the U.S. Federal Reserve has at least sixteen increases since that time.
Because, in 2006, it seems that the interest rates will rise, this is a good time to get before the cost is priceless. A fixed rate loan
Morgan James is editor at
The guide for Loans is an independent informational website dedicated to helping people understand how to effectively use their finances.
This site provides information on the financing of your life, such as personal loans, credit cards, mortgages and home improvement loans, and more financial information.
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