Interest Rates: Why Do They Matter if they’re Lower Than Ever?
Interest rates are now at their lowest levels in decades and this means that they're not as high as they once were, but the long-term effects are still negative. This article explores the impact of interest rates on the economy, how much lower it can get before it starts to have an effect, and what happens when rates hit zero. What is an Interest Rate? The interest rate is the price of borrowing money. It's important because it affects how much you pay back on a loan, how much you earn on a savings account, and how much you can…