When central banks raise interest rates, commercial banks pay higher rates to obtain money, which leads to increased borrowing costs for consumers and discourages spending.

Authors

• Person: Not available Organization: IG
  What Are the Key Macroeconomic Indicators? | IG International

Sources

• What Are the Key Macroeconomic Indicators? | IG International www.ig.com IG via serper

Referenced by nodes (2)

• borrowing costs concept
• interest rates concept