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Share the topic who are wes and companies The goal is to keep the economy running at a balanced rate borrowing to rise in order to discourage spending or force interest rates lower to stimulate more borrowing and spending Australia WhatsApp Number The main weapon at its disposal is state money The central bank sets the rates it charges for lending money to a countrys banks When they raise or lower their rates all financial institutions adjust the rates they charge to all of their customers from large corporations borrowing for major projects to homebuyers applying for mortgages All of
these clients are rate sensitive They are more likely to borrow when rates are low and postpone borrowing when rates are high Main sockets Monetary policy is a set of actions that a countrys central bank can take to control the overall money supply and achieve sustainable economic growth Monetary policy can be broadly classified as expansionary or contractionary Some of the tools available include adjusting interest rates up or down lending cash directly to banks and changing bank reserve requirements Understanding Monetary Policy Monetary policy is the control of the amount of
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