” says Van der Merwe. “Interest rates are a vital tool used by the Reserve bank to protect our currency’s value and keep our economy on a steady growth trajectory.”
Interest ratescan have a significant impact on the economy as a whole and your personal financial life. When tracking changes to interest rates, the stock market is often a major focal point, as rates can affect investors directly and indirectly. The impact of interest rate changes can also be...
The interest rate on credit cards is typically variable, meaning it can change from time to time. A credit card may also have multiple interest rates: one for purchases, one for cash advances, temporary promotional rates, etc. Read your credit card terms closely and make sure you un...
Interest rates are one of the single strong drivers of economic growth via the formation of capital and job creation. They also have a profound effect on our personal life when a steady flow business or employment income is generated to: Fully cover our household expenses, timely pay our ...
What does it mean when a mortgage is fixed rate? A mortgage with a fixed rate has a set interest rate that doesn’t change throughout the life of the loan — even if the Federal Reserve raises interest rates. With some other mortgage options, like a variable rate mortgage (also known ...
The reality is more complex. In the short term the Fed does indeed need to get a grip. But, as we explain, in the long run the world’s ageing population will keep acapon interest rates. That points to an unpleasant financialsqueeze, rather than a return to the 1970s. ...
As interest rates fall, you may notice your savings accounts aren’t returning as much cash as they used to. That’s part of the give-and-take of interest rate changes. “Banks make money by making a spread between what they pay for deposits and what they charge on loans,” Norris say...
The primary difference between variable-rate and fixed-rate loans is that the interest rate on a variable-rate loan can change. Fixed-rate loans have interest rates that will never change. However, this one difference has a massive impact on how these loans work. ...
Getting an auto loan for a longer term with lower interest rates might keep the monthly bill below a budget-busting level can be tempting, but is that a good idea? A longer-term loan can lower the monthly payment but the total interest paid over the life of the loan is greater. Key...
The interplay between interest rates and the stock market is complex and often misunderstood. Generally, these two forces move in opposite directions, with rising interest rates typically causing downward pressure on stock prices, while falling rates tend to boost the market. This relationship, however...