How Do Interest Rates Work? | RMIT University

RMIT University academic Dr Ashton de Silva from the School of Economics, Finance and Marketing explains how interest rates work.
Find out more www.rmit.edu.au/ecofinancemark...
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And if you have a question about how something works that you want answered, hit us up here ‪ow.ly/7LQJQ‬

[@MyDearKyoKun]

Thank you so, so much for this!

[@AshtondeSilva]

Just to clarify - the purpose of this clip was not to outline the effectiveness or appropriateness of monetary policy.
And yes, there are times when the RBA believes the economy may need to be "slowed down". Interestingly we are seeing the opposite at the moment given the rate cut announced yesterday.

[@amwin7]

is there a website that lets you see the rise n fall of interest rates on a national level or is that something you look at with banks individually?

[@Claude_the_Reaper]

The question is : How can I open up myself a bank ?

[@isaiahbot]

Interest is the cost of borrowing only from the perspective of the borrower. But to the lender it is the profits in lending. By defining it as a cost, then the whole video explains it from the borrower's perspective and not from the lender who actually 'makes' the interest rates and knows how they 'work'. Therefore, the title is misleading and it should've been 'The Effect of Interest Rates (on Borrowers)' instead.

[@clcasale]

they create money. basically out of nothing.