Interest rate

[wijcc]

Quick question on interest rates, do interest rates go up or down in times of recession generally?
Thanks in advance

 

[Nix]

I'd imagine that they generally fall.

 

[James07]

It can vary i think.. Depends how other things are doing, property, loans etc.

Interest generally goes up in recession though, drop in economy, raise in rates..

 

[freshy]

Interest generally goes up in recession though, drop in economy, raise in rates..

not true

in general one might say that interest rates will go down in a recession. but essentially it depends on the demand and supply for credit.

incomes will fall thus reducing people's savings and personal wealth.
The government’s demand for credit will generally rise in a recession, as the reduction in business and consumer incomes reduces tax revenues.

In general we can argue that interest rates will go down in order to stimulate economic activity.

Although it depends on the extent of the recession since the term is itself too broad.

some things to consider: difference between recession and slow down. very different. something to think about there.

ties with inflationary pressure

 

[freshy]

why did you ask incidentally?

 

[wijcc]

just out of interest

 

[Duke]

boom 'tish!