Dear Sir
I bought a property in South Australia this year.
Would like to know will the Australia's interest rate decrease again
in this coming 3 years time
for us to plan our cashflow accordingly
Thanks
MAC
email: dfsbipohmc@yahoo.com.uk
If interest rate increases will inflution increase or decrease?"
This is a 14.7059% decrease.
The feds don't decrease the interest rate, it just happens when securities are purchased
decrease
the real interest rate equals nominal interest rate minus inflation rate. In the situation the inflation rate increase and the nominal interest rate remains unchanged, therefore the real interest rate must decrease.
It may also encourage a decrease in the interest rates in the country if the central bank of that country wants to maintain the currency exchange rate and a decrease in the interest rate would spur local investment.
Due to tthe portion of the pie the others are ttaking the interest rate will decrease.
You may need to rephrase your question.
Factors that greatly affects interest rate, whether an increase or decrease, are economic and political stability. To list a few: Country's Inflation (exchange rate). Country's legislative changes.
nominal GDP decreases and the interest rate decreases
To find a low interest rate for a home loan, one should shop around at multiple financial institutions. Having a good paying job and great credit will help decrease your interest rate. If you find an interest rate that you think is low, be ready to sign the loan. Consider locking in that rate, unless you STRONGLY believe that the rate will drop in the near future.
An increase in the money supply shifts the money supply curve to the right. If you look on your graph, you will see that an increase in money supply will cause the interest rate to decrease. Here's why: Fed increases money supply-->excess supply of money at the current interest rate -->people buy bonds to get rid of their excess money-->increase in the prices of bonds --> decrease in the interest rate.