Changes in economic indicators can significantly affect monetary policy decisions. For instance, if the inflation rate rises above a central bank’s target level, the bank might increase interest rates to curb inflation. Conversely, if leading indicators suggest a future economic downturn, a central bank might cut interest rates to stimulate growth. Consider the relationship between […]
Arquivos do mês:agosto 2024
Economic Indicators: Definition, Types, How to Use
New orders for consumer goods, materials and capital goods imply future production and revenues. Interest rate spreads’ short vs long-term outlooks provide cues on overall activity. CPI data reveals the extent price rises are diminishing or maintaining consumers’ purchasing power over time. Mild inflation around 2% annually is generally consistent with steady economic activity and […]