The Impact of Interest Rate Changes on Consumer Spending

Abstract

This research was justified by the need to establish the impact of shifts in interest rates on consumption expenditures, which is a key factor in economic growth. Thus, the research’s objectives are to explore the influence of monetary policy actions performed by central banks in the context of their impact on consumers. It makes it possible for any given policymaker to work out measures which are favourable for both economic growth and stability. Further, these insights are useful in deciding the future business strategy since they give the companies an idea of what to expect in the market. In general, the study aims at expanding the existing knowledge concerning the macroeconomic consequences of interest rate volatility.