Australian Dollar Traders Higher Alongside Dow Jones Before

Analyst Picks, Market NewsNovember 3, 2022

The Hang Seng index rebounds off significant, long-term level in response
to stimulatory efforts focused on the property sectorThe Hang Seng index rebounds off significant, long-term level in response
to stimulatory efforts focused on the property sectorThe Hang Seng index rebounds off significant, long-term level in response
to stimulatory efforts focused on the property sector

Going into the supermarket, looking at your electricity bill or filling up your car
with gas, there is one thing that you can’t help but notice, the pricåes are rising.
While these are happening, you might notice that you are also paying for higher
interest rates on your mortgage. What is happening?
So while the prices are rising, the interest rates are also rising. Is this coincidence?
Or is there Science (or Economics) behind it? Is the central bank pushing our
pockets more into debt or does this actually solve or limit the impact of inflation?
What is inflation and how is it measured?
Inflation is best described as the rise in price. This is the rate which shows the
decline of purchasing power over time. In layman’s terms, the currency that we
own buys less than it did during the prior period. The most popular indicator ofinflation is the Consumer Price Index (CPI)
which measures the change in percentage in the price of a basket of goods and services consumed by households
(consumers).
What is the interest rate?
Interest rate is the amount a lender charges a borrower. This can also be applied to the amount a depositor earned from
a savings account or certificate of deposit.
How is the interest rate computed?
Interest rates can be simple or compounded. In regards to this article, we will be using simple interest rate which is
calculated using this formula:
Simple interest = Principal x Interest rate x Time
This formula can be applied to both borrowing and saving. The only difference is borrowers pay this amount while
depositors earn this amount.
Conclusion
An economy on either end of the scale can cause recession. To prevent this, the central bank adjusts the bank rate to
support the economy. Thus, the interest rate and inflation rate have an inverse correlation.. While the former increases,
the latter decreases. Although this relationship is complex, it is extremely important to understand this to limit personal
and business risks and even further profitability and stability.

What is the interest rate?
Interest rate is the amount a lender charges a borrower. This can also be applied to the amount a depositor earned froma savings account or certificate of deposit.Interest rate is the amount a lender charges a borrower. This can also be applied to the amount a depositor earned froma savings account or certificate of deposit.Interest rate is the amount a lender charges a borrower. This can also be applied to the amount a depositor earned froma savings account or certificate of deposit.Interest rate is the amount a lender charges a borrower. This can also be applied to the amount a depositor earned froma savings account or certificate of deposit.

What is the interest rate?
Interest rate is the amount a lender charges a borrower. This can also be applied to the amount a depositor earned froma savings account or certificate of deposit.Interest rate is the amount a lender charges a borrower. This can also be applied to the amount a depositor earned froma savings account or certificate of deposit.Interest rate is the amount a lender charges a borrower. This can also be applied to the amount a depositor earned froma savings account or certificate of deposit.Interest rate is the amount a lender charges a borrower. This can also be applied to the amount a depositor earned froma savings account or certificate of deposit.

What is the interest rate?
Interest rate is the amount a lender charges a borrower. This can also be applied to the amount a depositor earned froma savings account or certificate of deposit.Interest rate is the amount a lender charges a borrower. This can also be applied to the amount a depositor earned froma savings account or certificate of deposit.Interest rate is the amount a lender charges a borrower. This can also be applied to the amount a depositor earned froma savings account or certificate of deposit.Interest rate is the amount a lender charges a borrower. This can also be applied to the amount a depositor earned froma savings account or certificate of deposit.

What is the interest rate?
Interest rate is the amount a lender charges a borrower. This can also be applied to the amount a depositor earned froma savings account or certificate of deposit.Interest rate is the amount a lender charges a borrower. This can also be applied to the amount a depositor earned froma savings account or certificate of deposit.Interest rate is the amount a lender charges a borrower. This can also be applied to the amount a depositor earned froma savings account or certificate of deposit.

What is the interest rate?
Interest rate is the amount a lender charges a borrower. This can also be applied to the amount a depositor earned froma savings account or certificate of deposit.

What is the interest rate?
Interest rate is the amount a lender charges a borrower. This can also be applied to the amount a depositor earned froma savings account or certificate of deposit.Interest rate is the amount a lender charges a borrower. This can also be applied to the amount a depositor earned froma savings account or certificate of deposit.Interest rate is the amount a lender charges a borrower. This can also be applied to the amount a depositor earned froma savings account or certificate of deposit.Interest rate is the amount a lender charges a borrower. This can also be applied to the amount a depositor earned froma savings account or certificate of deposit.

This article was written by Angel

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