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Impact of Low Interest Rate | Microeconomic and Macroecnomic Theory

   

Added on  2019-10-18

10 Pages2014 Words169 Views
Student[COMPANY NAME] [Company address]LOW INTEREST RATE IN UK

Table of ContentsExecutive Summary.....................................................................................................................................2Introduction.................................................................................................................................................3Microeconomic Theory: Impact of low-interest rate...................................................................................4Macroeconomic Theory: Impact of low-interest rate..................................................................................6Expectations from Central Bank..................................................................................................................7Recommendation........................................................................................................................................8Conclusion...................................................................................................................................................8References...................................................................................................................................................9

Executive SummaryThis paper deal with the study of one microeconomic and one macroeconomic theory in order toexplain the impact of the low-interest rate on the British economy especially over the past sevenyears and the expectations from the Central Bank of England. UK interest rates have been at anall-time low value of 0.5 per cent rate since March 2009 in more than 300 years. The interest ratewas stepped down to 0.5 per cent during the desperate times by the policymakers as an attempt tostem the rush towards the financial depression that seemed to have rocked the country. The low-interest rate meant providing a boost to the customers along with maintenance of the confidenceof companies. This low-interest rate has impacted the country's economy significantly be it at amicro level or macro level. The central bank is yet to take any decision on this paper; the paper,however, highlights the expectations from the central bank along with some solutionsrecommended for solving the problem.

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