Name: 金利｜AFPアニメ (Interest rates | AFP Animé)
Uploaded: 2021-01-14T09:28:08.000Z
Duration: 2 min 7 s
Description: VoiceTubeの動画で発音を聞きながら英語表現を覚えよう！学べる英語：

interest is the cost of borrowing money or the reward for saving.

基礎受動態

The most important interest rate, one that affects the whole economy, is set by a country's central bank.

Central banks lend money to commercial banks, who in turn lead to businesses and individuals.

Of course, they charge interest on those loans.

The theory and the hope is that these loans lead to more spending and investment and a healthy economy.

When a central bank cuts its base rate, it becomes less attractive to save.

On the other hand, businesses are more likely to borrow money to invest in new machinery.

War Take on more staff People feel more confident about taking out a mortgage on a new home or buying a new car to boost a sluggish economy of central bank may even introduce a negative interest rate to try to get lenders to invest in the real economy rather than hoard cash.

But let's not forget that the main task of any central bank is to provide a framework for the economy to grow sustainably by targeting a steady currency and low inflation.

So if for example, prices are rising too fast.

The central bank may want to intervene to cool the economy by pushing interest rates up.

They tend to spend less on consumer goods.

Companies may think twice about splashing out on new equipment, and retailers might cut prices to encourage trade.

 However, people with say a mortgage on a house would suffer their monthly repayments would increase, so high or low interest rates have an impact on all of us. 