The whole world is passing through high inflation and economic uncertainties. The world is in serious trouble regarding inflation and economical issues. The major circumstance for inflation and financial market is interest rates.

There are other more reasons for the financial market but one of the main reason is interest rates. I have a topic to discuss today which is about the effect of interest rates on Financial markets.

The central bank in the United states have a significant impact on various aspects of the economy and Financial markets. The whole world has eyes upon the announcement of Interest rates in US every month.

No doubt every month the change in interest rate shapes the economical situations and financial markets. About this topic I want to discuss on the importance of interest rate and want to share the current interest rate in my country which makes you Wow.

Its good that interest rate must be low all the time, low interest rate helps borrowing money becomes cheaper. The low interest rate will help business man and other people to take loans at low interest. Also to get houses at lower rate which helps them pay interest easily.

But what if interest rates are high? Its obvious that business mind people will be silent at those time. The business moves will become slow and this will surely impact upon the country's economy.

Also the interest rate has deep impact on Stock markets. Whenever we see an announcement from Banks about interest rate there comes a quick stir is seen in shares price.

Exploring the Link between Interest Rates and Economic Turmoil

Let suppose the government announces that interest rate has increased by ... points. As soon investors and other businessman hear about this move they start selling their shares which effects the price of the whole market go downside.

In opposite, if interest rates are lower the market has positive move and more people will start buying shares. The stock market will go upside direction because people will prefer stock shares rather bank saving.

Unfortunately, the interest rate in my country is at its highest peak and that is 22%. This rise in interest rate has seriously effected the economy of the country. Where investors wants to invest in different business markets they now prefer banks savings.

Investors are looking this interest rate more charming to put their money in banks so that can earn easy and good monthly income. This will make investors become lazy and away from investment markets.

But on the other hand, we see the rising inflation which hits the middle class and lower class people. House and other loans will be difficult for the people who needs it. Because of the higher interest middle class people cant pay the interest which is the serious trouble.

What do you think Interest rates have impact on country's economy and financial markets? Do you think high inflation is one of the reasons for the higher interest rates? Will be glad to see your answers in the comment below.

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