What factors determine interest rates?

When we talk of interest rates, there are different types of interest rates -rates that banks offer to their depositors, rates that they lend to their borrowers,the rate at whichtheGovernment borrows in the Bond/Government Securities market, rates offered to investors in small savings schemes like NSC, PPF, rates at which companies issue fixed  deposits etc. The factors which govern these interest rates are mostly economy related and are commonly referred to as macroeconomic factors. Some of these  factors are:

•Demand for money
•Level of Government borrowings
•Supply of money
•Inflation rate
•The Reserve Bank of India and the Government policies which  determine some of the variables mentioned above



Get Live Intraday BTST Short Term Research Call on Mobile , Yahoo , Chat : visit:www.moneymantrastock.com

for Commodity Research call Visit : www.thecommodityline.com



Leave a Reply

You must be logged in to post a comment.