Question

high rate of interest is good or bad ?? reason for your answer .

Answer 1

The Central Bank usually increase interest rates when inflation is predicted to rise above their inflation target. Higher interest rates tend to moderate economic growth. They increase the cost of borrowing, reduce disposable income and therefore limit the growth in consumer spending. Higher interest rates tend to reduce the rate of economic growth and inflationary pressures.

Answer 2

higher rates are good as they moderate economic growth........