Interest Rates and the Impact on the Stock Market?

When central banks raise interest rates in response to positive economic indicators this is typically done to tamp down inflation pressures because they believe it will rise in the future. The other end of this is that increased interest rates will also moderate future economic growth by increasing the cost of borrowing. Interest rate increases by the central banks will be passed on to individuals through financial institutions via loans such as for mortgages, credit lines, and vehicles. Furthermore, the cost of capital for businesses looking to borrow will also increase leading to less business borrowing and suppressed economic activity as both businesses and individuals will have less


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