Interest rates are the cost of borrowing money either by individuals, companies or even governments
If people companies borrow less they have less money to invest and to spend
If interest rates go up this will result in more savings and less spending and eventually lead to a decrease in growth of the economy
If interest rates go down this will result in higher borrowing and higher spending and lead to an increased growth in the economy
If people companies borrow less they have less money to invest and to spend
If interest rates go up this will result in more savings and less spending and eventually lead to a decrease in growth of the economy
If interest rates go down this will result in higher borrowing and higher spending and lead to an increased growth in the economy