A pattern of low/negative real interest rates occurred in India between 2004-06 and helped fuel the boom of the period
When it comes to signals, interest rates are the most overworked of financial indicators. Rising inflation is marked by rising interest rates. Money supply is inversely linked to interest rates — more money in circulation usually leads to lower rates, and vice versa. Equity values are also inversely tied to rates. If rates rise, equity prices fall.
This article was originally published on December 05, 2009.
Gold hits record high. Should you still buy?
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