Interest rates refer to the percentage at which interest is charged or paid on borrowed money or earned on investments over a specific period. They represent the cost of borrowing or the return on investment, expressed as an annual percentage of the principal amount. Interest rates play a crucial role in the economy, influencing consumer spending, business investment, and overall economic growth. They are determined by various factors, including central bank policies, inflation, economic conditions, and market demand for credit. Higher interest rates typically discourage borrowing and spending, while lower rates tend to encourage them. Interest rates can be fixed, remaining constant over the loan or investment term, or variable, changing based on market conditions.
Joyobank adopts a cautious strategy amidst potential interest rate hikes, prioritizing vigilance in domestic bond investments. Executive Director Bird Yoshitsugu highlights the potential allure of government bonds if interest rates…