Understanding the Dynamics Behind Why Interest Rates Change

Why do interest rates change? This is a question that often comes to mind for both individuals and businesses when they are planning financial decisions. Interest rates, which are the cost of borrowing money, play a crucial role in the economy and can significantly impact various aspects of life, from mortgages and loans to savings accounts and investments. Understanding the factors that influence interest rate changes is essential for anyone looking to navigate the financial landscape effectively. In this article, we will explore the reasons behind the fluctuations in interest rates and their implications for the economy and individuals.