ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -If you’re currently paying interest on loans, credit cards or an overdraft, you might be able to save money by switching to a loan with a lower APR. This could reduce your monthly repayments, making them more manageable.

Detailed explanation-2: -Lower rates encourage borrowing and tend to increase money supply. For example, the lower the interest rate the lower the monthly mortgage payments on a newly purchased house.

Detailed explanation-3: -If you’ve been mulling over applying for a personal loan, now may be a good time to act, as interest rates could increase in May. If you’re taking out a large loan, having a lower interest rate could save you thousands of dollars over the course of a loan.

Detailed explanation-4: -If you’re thinking about getting a mortgage, changes to interest rates might give you cause to pause. As mentioned previously, the higher the interest rate, the higher your repayments will be. On the contrary, a lower interest rate may be a sign to act now in terms of your house hunt.