Top 5 Factors that Influence Interest Rate Movements in the Economy

The following points highlight the factors that influence interest rate movements in the economy. The factors are: 1. Inflation 2. Rate Signals from the RBI 3. Banking System Liquidity 4. Deposits in the Banking System 5. Fiscal Deficit and Government Borrowings. Factor # 1. Inflation: Inflation refers to the increase in the price levels in the economy. It refers to [...]