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Interest rates impact at micro and macro level

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					?Interest rates are the charges for the money or its equivalent that is borrowed from
the lenders. These are the key instruments of fiscal and monetary policy for the
government at the macro level and the government resorts to the control of these rates
to determine the speed of economic development of the country. In times of
inflationary tendencies, the government has to reduce the money supply in the country
and it might resort to making the loan rates more expensive. Similarly, in times of
recession or depression in the economy, it might want to spend more on the
development of productive infrastructure. For this purpose, it might want that the
money be made available for the investment purposes by way of public spending. So,
it will hike the interest rates on public instruments, reduce the loan rates and increase
the money supply. That is why the changes in these rates are announced on quarterly
basis.


Normally, it is the central bank of any country which determines the interest rates for
the different financial loan products of the banks, but in some countries, even the
governments too have a crucial say in the control of these rates. The national bank
term deposit rates, call rates between the banks and other such rates on the
institutional or retail financial products are hinged to the interest rates announced by
the central bank.
At the level of the individual or the organization, call it the micro level, these rates
considerably impact the investment decisions.


If are going to make fixed deposit investments, or investments in different bonds,
shares, insurance or other products, the return on the investment is the crucial
determinant of the decision. For evaluating these options of investment comparatively,
it is important that the person gets the right advice from some professional experts in
finance. However, there is some charge for this advice and there could also be the
compulsion to take the services of the expert.


As an alternative, there are a number of internet sites which can be used for doing
comparative evaluation of the interest rates being offered by different companies on
the different products. These render the comparisons very easy since you do not have
to run here and there collecting information and then finding time for doing analysing.
At the same time, you can also discount the option of using the expert opinion which
might be more willing to sell his preferences due to the commission motive.


Yet another benefit of using the services of these sites is that these are continually
updated, most of them in the real time, or when the changes being announced in the
national bank term deposit rates take effect at ground level. Some of these sites might
even be recommending you some of the companies and their products based on
various parameters of performance till some period in the past.


So, you just need to find the right sites which give the right and timely updates on
interest rates.
About Author: This article is written by Term Deposit which is a licensed securities
dealer regulated by the Australian Securities and Investment Commission (ASIC).It is
designed to help you find the best fixed term deposit in Australia.


For more information visit us at: /

				
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