• Teaching
    • Montessori Teacher Training 🔥
    • Yoga Teacher Training
  • Coding
    • Full Stack Development Course
    • Data Science Course
    • Python Programming Course
    • Software Testing Course
    • Architecting on AWS
  • Commerce
    • PwC Edge : Strategic Accounting and Finance Programme
    • ACCA Course
    • SAP Fico Course
    • Practical Accounting Course
    • SAP MM Course
    • HR Management Course in Kerala
  • Technical
    • Structural Design Course
    • Embedded Systems Software Engineering in Kerala
    • MEP Course
    • MEP QS Course
    • BIM Training Course
    • Quantity Survey Course
  • Finacademy
    • Forex Trading Course
    • Stock Market Course
    • Mutual Funds Course in Kerala
  • Digital Marketing
    • Digital Marketing Course
    • Performance Marketing Course
  • Language Learning
    • Spoken English Course
    • German Language Course
    • IELTS Exam Coaching
  • Exam Preparation
    • Kerala PSC Coaching
    • Kerala PSC LGS Coaching
    • KAS Coaching
    • Kerala PSC LDC Coaching
    • Kerala PSC LSGS Coaching
    • KPSC Industries Extension Officer Coaching
    • KPSC Technical Mechanical Coaching
    • KPSC Technical Electrical Coaching
    • Kerala PSC Technical Exam Preparation
    • KPSC Technical Civil Coaching
    • SBI PO Coaching
    • IBPS Clerk Coaching
    • IBPS PO Coaching
    • IBPS SO Coaching
    • Bank Exam Coaching
    • Lecturer in DIET Course
    • Kpsc HSA Coaching
    • KPSC LP UP Assistant Coaching
    • EMRS Coaching
    • KTET Coaching
    • SSC Coaching
    • SSC JE Coaching
    • SSC CGL Coaching
    • SSC CHSL Coaching
    • SSC MTS Coaching
    • UPSC Coaching
  • Health Care
    • DHA Course
    • OET Coaching
  • Other Exams
    • GATE Coaching
    • CAT Coaching
    • MAT Online Coaching
    • KMAT Online Coaching
Entri Blog
No Result
View All Result
Wednesday, July 9, 2025
  • Kerala PSC
    • Kerala PSC General
      • Kerala PSC Exams
      • KAS Exam
      • Kerala PSC VEO Notification
      • Kerala Police SI
      • Kerala PSC LDC Notification
      • Kerala PSC Village Field Assistant Notification
      • Kerala PSC LD Typist Notification
      • Kerala PSC Food Safety Officer
      • Kerala PSC Excise Inspector Notification
      • Kerala PSC BDO Notification
      • Kerala PSC CPO Notification
      • Kerala PSC LGS Notification
      • Fire and Rescue Officer
      • Women Fire and Rescue Officer
    • Kerala PSC Teaching
      • Kerala PSC HSA
      • Kerala PSC HSST
      • KTET
      • LP/UP Assistant
      • KVS
      • Railway Teacher
    • Kerala PSC Technical
      • LSGD AE
      • Draftsman/Overseer
      • IEO
      • ATP
      • Polytechnic Lecturer
      • AE Electronics
      • Assistant Engineer
  • Banking
    • IBPS PO Notification
    • IBPS Clerk Notification
    • SBI PO Notification
    • SBI Clerk Notification
    • SBI SO Notification
    • SBI Apprentice Notification
    • Canara Bank PO Notification
    • Indian Bank PO Notification
    • RBI Assistant Notification
    • RBI Office Attendant Notification
    • IBPS RRB Notification
    • IBPS RRB Office Assistant Notification
  • Skilling
    • Coding
    • Spoken English
    • Stock Market
      • Share Market Today News
      • Share Market Analysis
    • Digital Marketing
    • Accounting Course
    • SAP
    • OET
    • German
    • IELTS
    • Quantity Survey
    • MEP
    • Structural Design
    • Montessori
    • Yoga Teaching
    • Oil and Gas
  • Courses
    • Data Science Course
      • Data Science Malayalam
      • Data Science Course in Tamil
      • Data Science Course in Telugu
      • Data Science Training in Kochi
      • Data Science Training in Trivandrum
      • Data Science Course in Calicut
      • Data Science Training in Thrissur
    • Data Analytics Course
      • Data Analytics Course in Malayalam
      • Data Analytics Course in Tamil
      • Data Analytics Course in Telugu
    • BIM Course in Kerala
    • Quantity Surveying Course
      • Quantity Surveyor Course in Tamil
      • Quantity Surveying Course in Telugu
      • Quantity Surveyor Course in Hyderabad
      • Quantity Surveying Course in Chennai
      • Quantity Surveying Course in Vijayawada
      • Quantity Surveying Course in Guntur
      • Quantity Surveying Course in Warangal
      • Quantity Surveying Course in Karimnagar
    • Structural Design Course
      • Steel Structure Design Course
      • RCC Design Course
    • MEP Course
      • MEP Quantity Surveying Course
      • MEP Design Course in Kerala
      • HVAC Course
      • MEP Course in Kochi
    • Embedded System Course
    • Full Stack Developer Course
      • Full Stack Development Malayalam
      • Full Stack Development Hindi
      • Full Stack Development Tamil
      • Full Stack Development Telugu
      • Full Stack Development Kannada
    • Stock Market Course
      • Stock Market Course in Malayalam
      • Stock Market Course in Tamil
      • Stock Market Course in Kannada
      • Options Trading Course
    • Mutual Funds Course
    • Forex Trading Course
    • Spoken English Course
      • Spoken English Course in Malayalam
      • Spoken English Course in Hindi
      • Spoken English Course in Telugu
      • Spoken English Course in Tamil
      • Spoken English Course in Kannada
    • Python Programming Course
    • AI Powered Flutter
    • Ui Ux Designer Course
    • Software Testing Course
      • Software Testing Course in Malayalam
      • Software Testing Course in Tamil
      • Software Testing Course in Telugu
    • AWS Solutions Architect Associate Course
    • PwC Edge : Strategic Accounting and Finance Programme
    • Practical Accounting Course
      • Accounting Course in Malayalam
      • Accounting Course in Tamil
      • Tally Course
      • Taxation Course
      • UAE Accounting
      • GST Course
      • Zoho Books Training
      • GST Practitioner Course in Kerala
      • GCC VAT Course
    • ACCA Training Online
      • ACCA Course in Kerala
    • SAP Training Courses
      • SAP FICO Course
      • SAP MM Course
      • SAP SD Training
      • SAP FICO Course in Tamil
      • SAP MM Course in Tamil
    • HR Management Course
    • Performance Marketing Course
    • Mern Stack Developer Course
      • Full Stack Developer Course in Kochi
      • Full Stack Developer Course in Trivandrum
      • Full Stack Developer Course in Calicut
      • Full Stack Developer Course in Pune
      • Full Stack Developer Course in Bangalore
      • Full Stack Developer Course in Hyderabad
      • Full Stack Developer Course in Chennai
      • Full Stack Developer Course in Indore
      • Full Stack Developer Course in Jaipur
      • Full Stack Developer Course in Coimbatore
    • Digital Marketing Training
      • Digital Marketing Course in Kochi
      • Digital Marketing Course in Trivandrum
      • Digital Marketing Course in Calicut
      • Digital Marketing Course in Kollam
      • Digital Marketing Course in Thrissur
      • Digital Marketing Course in Kottayam
      • Digital Marketing Course in Kannur
    • Montessori Teacher Training
      • Montessori Teacher Training in Calicut
      • Montessori Teacher Training in Kochi, Ernakulam
      • Montessori Teacher Training in Trivandrum
      • Montessori Teacher Training in Kollam
      • Montessori Teacher Training in Malayalam
      • Montessori Teacher Training in Kannada
    • Other Courses
      • German Language Course
      • OET Coaching
        • OET for Pharmacist
        • OET for Nurses
      • DHA Course
      • MOH Exam Coaching
      • Nurses Recruitment Abroad
      • FMGE Coaching
      • ChatGPT Course
      • Forex Trading Course
      • Yoga Teacher Training Course
      • Diploma in Early Childhood Care and Education
      • Business Administration & Hospital Management Course
      • Hospital and Healthcare Administration
      • AI for Teachers Course
  • Others
    • Railway
      • RRB Technician Notification
      • RRB JE Notification
      • RRB ALP Notification
      • RRB NTPC Notification
      • RRB RPF Notification
      • RRB RPF SI Notification
      • RRB RPF Constable Notification
      • RRB Group D Notification
      • RRB RPSF SI Notification
      • RRB SSE Notification
    • SSC
      • SSC CPO Notification
      • SSC MTS Notification
      • SSC CGL Notification
      • SSC CHSL Notification
      • SSC GD Constable Notification
      • SSC Stenographer Notification
      • SSC JE Notification
      • SSC CAPF Notification
      • SSC JHT Notification
      • Delhi Police Constable Notification
      • Delhi Police SI Notification
    • GATE
    • MAT
    • KMAT
      • KMAT Kerala 2024
    • TET
      • APTET
      • CTET
      • DSSSB
      • Karnataka TET
      • Kerala TET
        • KTET Notification
      • KVS
      • MPTET
      • SUPER TET
      • TNTET
      • TSTET
      • UPTET
    • UPSC
      • UPSC CAPF Notification
      • UPSC CDS Notification
      • UPSC NDA Notification
      • UPSC Civil service Notification
  • Free Learn
    • Free Courses
      • Free Coding Courses
        • C Langauge Courses
        • Free Data Science Courses
        • Free Python Programming Courses
        • Free Full Stack Developer Courses
      • Free Accounting Courses
      • Free Digital Marketing Courses
        • Free SEO Courses
        • Web Development for Marketers
      • Engineering Upskilling Courses
      • Free Hospital Administration Courses
      • Free OET Training
      • Free SAP Courses
      • Free German Courses
      • Free IELTS Courses
      • Free Teachers Training Courses
      • Free Trading Courses
        • Free Stock Market Courses in Malayalam
        • Free Options Trading Course Malayalam
        • Free Forex Trading Courses Malayalam
        • Free Personal Finance Courses Malayalam
    • Question Answer
    • Aptitude Questions
    • Webinars
  • Test Prep
    • Kerala PSC Coaching
      • KPSC Degree Level Exam Preparation
      • Kerala PSC 12th Level Exam Preparation
      • Kerala PSC 10th Level Exam Preparation
      • KAS Coaching
      • Kerala PSC LDC Coaching
      • Kerala PSC LD Typist Coaching
      • Kerala PSC Fireman Coaching
      • KSFE Assistant Exam Preparation
      • Secretariat Office Attendant Coaching
      • Secretariat Assistant Coaching
      • Kerala PSC SI Exam Coaching
      • Khadi Board LDC Exam Preparation
      • Devaswom Board LDC Coaching
      • University LGS Exam Preparation
      • University Assistant Exam Coaching
      • KPSC Scientific Officer Exam Coaching
      • KPSC Probation Officer Grade II
      • KPSC Food Safety Officer Coaching
      • KWA Sanitary Chemist Coaching
      • KPSC Diary Farm Instructor Exam Coaching
      • Kerala PSC KWA Lab Assistant Exam Coaching
      • Kerala PSC ICDS Supervisor Exam Coaching
      • KPSC Finger Print Searcher Coaching
      • Kerala PSC Welfare Officer Gr. II Exam Coaching
      • KPSC Assistant Dental Surgeon Coaching
    • KPSC Teaching Exams
      • HSA Exam Preparation
      • KPSC HSA Social Science Coaching
      • KPSC HSA Physical Science Coaching
      • KPSC HSA English Coaching
      • KPSC Junior Language Teacher Hindi
      • KTET Coaching
      • SET Coaching
      • LP/UP Assistant Exam Coaching
      • HSST Exam Preparation
      • HSST Commerce Exam Coaching
      • Kerala PSC Lecturer in Diet Coaching
      • KVS PGT/TGT Coaching
    • Kerala PSC Technical Exams Coaching
      • Assistant Engineer Electrical Exam Coaching
      • Assistant Engineer Electronics Coaching
      • Assistant Engineer Mechanical Coaching
      • Kerala PSC Industries Extension Officer Coaching
      • KPSC LSGD AE Exam Coaching
      • KPSC Civil Engineering Exam Coaching
      • KPSC Mechanical Engineering Exam Coaching
      • KPSC Electrical Engineering Exam Coaching
      • KPSC Electronics Engineering Exam Coaching
      • KPSC Technical Computer Science Coaching
      • KPSC Tradesman Turning Coaching
      • Kerala PSC Overseer Exam Coaching
      • KPSC Assistant Town Planner Coaching
      • Lecturer in Polytechnic Electronics Coaching
    • Teaching Exams Coaching
      • CSIR NET Exam Coaching
      • EMRS Coaching
      • CTET Exam Online Coaching
    • IELTS Training Online
    • Bank Exam Coaching Online
      • SEBI Grade A Coaching
      • IBPS SO Online Coaching
      • IBPSC PO Online Coaching
      • IBPSC Clerk Online Coaching
      • SBI PO Coaching
      • SBI Clerk Online Coaching
      • SBI Apprentice Class
      • SBI SO Online Coaching
      • RBI Grade B Coaching
      • RBI Assistant Coaching
      • CSEB Exam Coaching
      • IBPS RRB Coaching
      • IBPS RRB PO Coaching
      • Canara Bank Po Exam Coaching
      • Kerala Gramin Bank Coaching
      • Kerala Bank Exam Coaching
        • Kerala Bank Clerk Exam Coaching
        • Kerala Bank Office Attendant Exam Coaching
        • Kerala Bank Assistant Manager Exam Coaching
      • JCI Exam Coaching
      • NABARD Grade A Coaching
      • LIC AAO Coaching Online
    • UPSC Online Coaching
      • UPSC CAPF Online Coaching
    • SSC Online Coaching
      • SSC JE Online Coaching
      • SSC CGL Coaching
      • SSC CGL AAO Coaching
      • SSC CHSL Coaching
      • SSC CGL CBI Inspector Coaching
      • SSC MTS Coaching
      • SSC Stenographer Coaching
      • SSC GD Online Coaching
    • RRB Exams Coaching
      • RRB RPF Exam Coaching
      • RRB NTPC Exam Coaching
      • RRB JE Online Coaching
      • RRB JE Electronics Coaching
      • RRB ALP Exam Coaching
      • RRB Technician Exam Coaching
    • CAT Online Coaching
    • CMAT Online Coaching
    • XAT Exam Coaching
    • GATE Online Coaching
      • GATE CE Online Coaching
      • GATE ME Online Coaching
      • GATE EE Online Coaching
    • NMAT Exam Coaching
      • AAI ATC Jr Executive Coaching
    • Cochin Shipyard Executive Trainee Coaching
    • BEL Probationary Engineer Coaching
    • HPCL Junior Executive Coaching
Free Courses
Entri Blog
  • HTML Tutorial
  • DSA Tutorials
  • Tutorials in Hindi
    • HTML Tutorial for Beginners in Hindi
    • Python Tutorial for Beginners in Hindi
    • GIT and GITHUB Tutorial for Beginners in Hindi
  • Tutorials in Tamil
    • JavaScript Tutorial in Tamil
  • Tutorials in Telugu
    • HTML Tutorial For Beginners in Telugu
    • CSS Tutorial for Beginners in Telugu
    • Bootstrap Tutorial for Beginner in Telugu
  • Tutorials in Kannada
    • HTML Tutorial For Beginners in Kannada
entri exclusive offers entri exclusive offers
Home Articles

Impact of Interest Rate Hikes

by Sreevidya M
April 14, 2025
in Articles, Stock Marketing
Impact of Interest Rate Hikes
Share on FacebookShare on WhatsAppShare on Telegram

Table of Contents

  • Interest Rate Increase 2022
  • Impact of Interest Rate Hikes
  • Impact of Interest Rate Hikes on the Indian Economy

The goal of the Federal Reserve is to maintain a healthy, balanced economy in the United States. Inflation and asset bubbles can spiral out of control and endanger the stability of the economy when the economy is booming. When this happens, the Fed intervenes by raising interest rates, which aids in slowing the economy and maintaining steady growth.

Interest Rate Increase 2022

On June 15, 2022, the Federal Reserve increased interest rates by 0.75 percentage points, the third increase of the year and the biggest since 1994. The measure is intended to counteract the fastest rate of inflation in over 40 years.

Click here to increase your stock market literacy.

Impact of Interest Rate Hikes

1: What is a stock?

2: Who is a stockbroker?

3: What does IPO stand for?

4: Which of the following is a stock exchange in India?

5: What is a dividend?

    Fill out the form to see the results



    Ever wondered how much you really know? It's time to put your brain to the test!

    The Fed’s primary responsibility is overseeing the country’s monetary policy, which entails managing the money supply in the economy. Although the Fed has a variety of instruments at its disposal, its capacity to affect interest rates is by far the most visible and potent monetary policy tool. The federal funds rate, often known as the federal funds target rate, is what people usually refer to when they talk about the Fed raising interest rates. The Federal Open Market Committee (FOMC) establishes a target range for the federal funds rate at its regularly scheduled meetings. This rate serves as a benchmark for the interest rates that major commercial banks charge one another for overnight loans.

    To meet the liquidity standards set by authorities, notably the Fed, banks borrow overnight loans. The effective federal funds rate is the average of the rates that banks negotiate for overnight lending. Other market rates, such as the prime rate and SOFR, are subsequently impacted by this. The federal funds rate is the most significant benchmark for interest rates in the U.S. economy and has an impact on interest rates across the entire world economy because of this relatively indirect arrangement.

    Click to get to know more about various subjects under the stock market

    Impact of Interest Rate Hikes on Stocks

    Even if rising interest rates can affect profitability on a larger scale, businesses that conduct the majority of their business in the United States often benefit from an increase. That is because the stronger U.S. currency makes regional goods more enticing. Companies that conduct a sizable portion of their business internationally suffer from the increasing dollar. Companies abroad experience an actual reduction in sales when the U.S. dollar strengthens versus other currencies owing to higher interest rates.

    At some time, businesses including Microsoft, Hershey, Caterpillar, and Johnson & Johnson have all issued warnings about how the strengthening dollar may affect their profits. Rate increases frequently have a favourable effect on the financial industry. Bank equities often do well when interest rates are rising. Even though there is an indirect correlation between interest rates and the stock market, the two typically move in opposing directions. As a general rule, when the Fed lowers interest rates, the stock market rises, and when the Fed raises interest rates, the stock market falls. However, there is no way to predict how the market will respond to every particular change in interest rates that the Fed decides to make.

    Click to learn how interest rates fluctuation is significant in the stock market

    Impact of Interest Rate Hikes on Prime Rate

    The prime rate increases as soon as the Fed raises interest rates (referred to by the Fed as the Bank Prime Loan Rate). The credit rate that banks offer to their most credit-worthy clients is represented by the prime rate. Other types of consumer credit are determined by this rate because a higher prime rate means that banks will raise fixed- and variable-rate borrowing charges when determining the risk of lending to less creditworthy businesses and individuals.

    Impact of Interest Rate Hikes on Credit Card Rates

    Banks evaluate other people’s creditworthiness based on their risk profile and the prime rate. Rates for credit cards and other loans will be impacted because both involve a thorough risk assessment of customers seeking credit to make purchases. Borrowing for the short term will have higher interest rates than borrowing for the long term.

    Impact of Interest Rate Hikes on Savings 

    The tick-up in the prime rate results in higher rates for the money market and certificate of deposit (CD) accounts. Theoretically, this should encourage consumers and corporations to save more because they can get a better return on their investments. The consequence, on the other hand, might be that someone who is heavily in debt would want to work toward paying off their debts to counterbalance the higher variable rates associated with credit cards, home loans, or other debt instruments.

    Master stock trading with us. Enroll now for a free demo!

    Impact of Interest Rate Hikes on Bonds and Borrowing

    Bonds are highly susceptible to fluctuations in interest rates. Existing bond prices automatically fall on the market when the Fed raises interest rates. This is due to the upcoming release of new bonds that will pay investors greater interest rates. Existing bonds will lose value to reflect the rising overall rates, luring investors with their comparably lower interest rate payments. Inflation also reduces the true value of a bond’s face value, which is especially problematic for longer-term debts. People are also less willing to borrow money or refinance debt because it is more expensive to do so as interest rates climb.

    Impact of Interest Rate Hikes on Business Profits

    The banking industry typically experiences higher earnings as a result of rising interest rates because they can now profit more from the money they lend out. But a rate increase reduces profitability for the rest of the world’s businesses. That’s because expanding requires more costly capital. That can be bad news for a market that is now seeing a decline in earnings. Since they may get capital with more affordable financing and make investments in their operations at a lower cost, declining interest rates should increase the earnings of many enterprises.

    Impact of Interest Rate Hikes on U.S. National Debt 

    An increase in interest rates drives up the cost of borrowing for the US government, driving up the national debt as well as budget deficits. The Committee for a Responsible Federal Budget projects a $12.7 trillion overall budget deficit from 2022 to 2031. The deficit would rise by $1 trillion with a 0.5 percentage point increase in rates. In 2031, the national debt as a share of GDP is projected to be 107.5 per cent. This would rise to 110.6% of GDP if rates were 50 basis points higher.

    Click here to know more about fed interest and its effect on the stock market

    Impact of Interest Rate Hikes on Mortgage Rates

    Home buyers may rush to close on a deal for a fixed loan rate on a new home at the first hint of a rate hike, but historically, mortgage rates have fluctuated more in line with the yield on domestic 10-year Treasury notes, which is heavily influenced by interest rates. As a result, if interest rates decrease, so will the cost of a mortgage. It becomes more affordable to purchase a home as mortgage rates decline.

    Impact of Interest Rate Hikes on Auto Loan Rates

    The Fed’s zero-interest-rate policy has been extremely advantageous for the auto industry, but rising benchmark rates will have a small but noticeable effect. In principle, reduced auto loan interest rates should boost automobile purchases, but these expensive things might not be as sensitive to borrowing on credit cards for more urgent requirements.

    Impact of Interest Rate Hikes on Home Sales

    The demand for homes often declines when interest rates and inflation rise. Homebuyers can expect to pay at least 60% in interest throughout their investment, for instance, on a 30-year loan at 4.65 per cent. However, if rates drop, the same house at the same price will have lower monthly payments and less interest paid overall throughout the mortgage. The same home becomes more inexpensive as mortgage rates decline, therefore purchasers should be keener to make purchases.

    Master stock trading with us. Enroll now for a free demo!

    Impact of Interest Rate Hikes on Inflation

    When the average price of goods and services increases in an economy, it is said to be experiencing inflation. This can happen when a country’s currency loses value or when the economy is overloading, or when demand for goods is growing too quickly and supply is not keeping up with it, which results in price increases. For the central bank to control inflation, interest rates are frequently raised when inflation increases (they tend to target 2 per cent a year of inflation). However, if interest rates decline, inflation may quicken as individuals start using cheap borrowing again and driving up costs. Interest rate increases result in lower inflation. When interest rates rise, it makes it more expensive to borrow money, which drives up the cost of goods and services. If the interest rate is greater, it will cost more to buy a house or a car. Customers spend less as a result, which lowers the demand for goods and services. Inflation is decreased when demand declines and prices follow suit.

    Impact of Interest Rate Hikes on Consumers

    Historically, rising borrowing prices have a negative impact on consumer expenditure. Higher credit card interest rates and higher savings rates brought on by better bank rates promote a decline in impulsive consumer spending. Consumers can purchase items on credit for less money as interest rates decline. This can include everything from appliances purchased with a credit card to cars financed with loans.

    Related Articles
    Is Stock Market Risky And Dangerous For Beginners? Pump and Dump Scheme – Definition, Ways to Spot It
    What are the Risky Factors for Stock Market Trading? What is a ‘Fat-Finger Trade’ or Freak Trade?
    How Do People Lose Money in the Stock Market? How does Recession Affect Stock Market?
    Critical Factors that could be Disastrous for Stock Market in the Long Run What Is Recession? How Does It Impact Stock Market?
    Stock Market Crash – Definition, Causes, Examples Problems of Stock Exchange Listing
    History of Stock Market Crashes In India What Are Junk Bonds?
    What Caused Black Monday in 1987? Know Its Effects High Inflation Rates and Scarcity
    2007–2008 Financial Crisis – Definition, Causes, Effects Common Investment Mistakes to Avoid as a Beginner
    Impact of Global Events on the Indian Stock Market How Corporate Actions Impacts Stock Price?

    SEBI-Compliant Stock Market Training

    Trusted, practical strategies to help you grow with confidence. Enroll now and start investing the right way.

    Know more

    Impact of Interest Rate Hikes on the Indian Economy

    In a clear demonstration of its commitment to bringing down inflation in the largest economy in the world from 8.6 per cent in May to 2 per cent—the fastest increase in four decades—the Federal Reserve increased its target interest rate by three-quarters of a percentage point on June 15. It was the largest rate increase by the US Federal Reserve since 1994. The Fed predicted that US economic growth would slow down in the coming months and that the unemployment rate would likely rise. The shift will affect the Indian economy in the following five ways:

    • Tough economic conditions: Although there will be less price pressure on globally traded commodities, of which India is a net consumer, if the Fed is successful in slowing demand in the largest consumer market in the world, higher interest rates will lessen the “push factor” for risk capital to flow into emerging markets like India.
    • Trade deficit and declining rupee: Indian markets run the risk of losing their appeal to global investors. The Indian rupee has already weakened as a result of a growing trade deficit, an increase in import growth that has outpaced export growth, and several other factors. According to economists, the US Fed’s most recent rate increase will increase US Treasury yields and strengthen the dollar’s position versus the Indian rupee.
    • consumer hardship: Similar to their American counterparts, Indian consumers see a decline in their real disposable income as a result of inflation. Higher debt servicing costs will result in decreased real disposable incomes as a result of the Feds and the Reserve Bank of India’s withdrawal of monetary accommodation.
    • Current account deficit: RBI has been attempting to indirectly affect the balance of payments (BoP) within the framework of a controlled floating exchange rate regime through interest rates, according to economists. The rupee’s freefall depreciation would help exporters, but it would also result in a massive current account deficit that the government would be unable to handle. The Mundell-Fleming model states that a country’s economy cannot sustain a stable exchange rate, unrestricted capital flow, and independent monetary policy at the same time.
    • Increased Inflation: The Fed rate hike may cause India’s inflation rate to increase. The price of imported commodities including electronics, crude oil, chemicals and fertilisers, active medicinal components, and chemicals will rise as a result of the rupee’s depreciation.

    Start investing like a pro. Enroll in our Stock Market course!

    The price of borrowing money rises when interest rates do as well. This raises the price of purchasing some products and services, such as homes and cars. Customers spend less as a result, which lowers the demand for goods and services. When consumer demand for products and services declines, firms reduce production and fire employees, which raises the unemployment rate. In general, the economy weakens when interest rates rise. The opposite is true when interest rates are reduced. Download the Entri app to increase your stock market literacy.

    Achieve Financial Freedom with these courses?
    Stock Market Trading Course
    Forex Trading Course
    Mutual Funds Course
    Share62SendShare

    Sreevidya M

    Post-Graduate in English Language and Literature, freelance writer and an SSC aspirant. Provides updates on notifications, syllabuses and dates for government exams.

    Related Posts

    Ultimate Guide to TestDaF Everything You Need to Know to Ace the German Language Exam
    Articles

    Ultimate Guide to TestDaF: Everything You Need to Know to Ace the German Language Exam

    July 8, 2025
    25+ Idioms About Success and Failure for IELTS Speaking [With Examples]
    Articles

    25+ Idioms About Success and Failure for IELTS Speaking [With Examples]

    July 8, 2025
    How Structural Engineers Design Buildings
    Articles

    How Structural Engineers Design Buildings?

    July 7, 2025
    Next Post
    What is An Overdraft Facility in Bank Accounts?

    What is An Overdraft Facility in Bank Accounts?

    stock market course stock market course stock market course

    Different Trading and Investment Courses

    1. Stock Market Courses in Malayalam
    2. Stock Market Courses in Tamil
    3. Stock Market Courses in Kannada
    4. Forex Trading Course
    5. Mutual Funds Course
    6. Online Options Trading Course

    City wise Trading Course:

    • Stock Market Training in Kochi
    • Stock Market Course in Trivandrum
    • Stock Market Course in Calicut
    • Stock Market Course in Bangalore
    • Stock Market Course in Chennai
    • Stock Market Course in Coimbatore
    • Forex Trading Course in Dubai, UAE

    Explore More

    1. Daily Post Stock Market Analysis
    2. Impact of Global Events on the Indian Stock Market
    3. Differences between Rights Shares and Bonus Shares
    4. Indian vs US Stock Market
    5. Difference Between Stock Market And Share Market
    6. How are Stocks Different from Other Investments?
    7. Intraday Option Trading – Strategies
    8. 15 Candlestick Patterns
    9. The Impact of Technology on the Stock Market
    10. Problems of Stock Exchange Listing
    11. What Are Different Types Of Stocks?
    12. How do Mergers and Acquisitions Affect Stock Prices?
    13. What is Short Selling in Stock Market?
    14. How to Trade Options: Strategies for Beginners

    Courses

    • Data Science Course
    • Full Stack Developer Course
    • Software Testing Course
    • Data Science Course in Malayalam
    • Full Stack Developer Course in Malayalam
    • Full Stack Developer Course in Hindi
    • Full Stack Developer Course in Tamil
    • Full Stack Developer Course in Telugu
    • Full Stack Developer Course in Kannada
    • Python Programming Course
    • Practical Accounting Course
    • Structural Design Course
    • Quantity Surveying Course
    • Embedded Systems Course in Kerala
    • BIM Course
    • MEP Course
    • MEP QS Course
    • Stock Market Course
    • Stock Market Course in Malayalam
    • Stock Market Course in Tamil
    • Stock Market Course in Kannada
    • Forex Trading Course
    • Mutual Funds Course
    • PwC Edge : Strategic Accounting and Finance Programme
    • SAP FICO Training
    • SAP MM Training
    • SAP SD Training
    • ACCA Online Course
    • HR Management Course

    Company

    • Become a teacher
    • Login to Entri Web

    Spoken English Courses

    • Spoken English Course
    • Spoken English Course in Malayalam
    • Spoken English Course in Hindi
    • Spoken English Course in Tamil
    • Spoken English Course in Telugu
    • Spoken English Course in Kannada
    • Spoken English Course for Housewives
    • Spoken English Course for Working Professionals
    • Spoken English Course for School Students
    • Spoken English Course for College Students
    • Spoken English Course for Job Seekers
    • AI Powered Spoken English Course

    Quick Links

    • Explore Free Courses
    • Aptitude Questions
    • Articles
    • Videos
    • Entri Daily Quiz Practice
    • Current Affairs & GK
    • News Capsule – eBook
    • Preparation Tips
    • Kerala PSC Gold
    • Entri Skilling
    • Kerala PSC

    Other Courses

    • OET Coaching Classes
    • DHA Course
    • Nurse Recruitment Abroad
    • Montessori Teachers Training
    • Performance Marketing Course
    • German Language Course
    • Yoga Teacher Training Course
    • Digital Marketing Course
    • Options Trading Course
    • German Language A1 Course
    • German Language A2 Course
    • German Language B1 Course
    • German Language B2 Course
    • Diploma in Early Childhood Care and Education
    • Hospital and Healthcare Administration
    • Business Administration & Hospital Management
    • Hospital and Healthcare Administration

    Popular Exam

    • IBPS Exam
    • SBI Exam
    • Railway RRB Exam
    • Kerala PSC
    • Tamil Nadu PSC
    • Telangana PSC
    • Andhra Pradesh PSC
    • MPPSC
    • UPPSC
    • Karnataka PSC
    • Staff Selection Commission Exam
    • GATE

    © 2023 Entri.app - Privacy Policy | Terms of Service

    No Result
    View All Result
    • Kerala PSC
      • Kerala PSC General
        • Kerala PSC Exams
        • KAS Exam
        • Kerala PSC VEO Notification
        • Kerala Police SI
        • Kerala PSC LDC Notification
        • Kerala PSC Village Field Assistant Notification
        • Kerala PSC LD Typist Notification
        • Kerala PSC Food Safety Officer
        • Kerala PSC Excise Inspector Notification
        • Kerala PSC BDO Notification
        • Kerala PSC CPO Notification
        • Kerala PSC LGS Notification
        • Fire and Rescue Officer
        • Women Fire and Rescue Officer
      • Kerala PSC Teaching
        • Kerala PSC HSA
        • Kerala PSC HSST
        • KTET
        • LP/UP Assistant
        • KVS
        • Railway Teacher
      • Kerala PSC Technical
        • LSGD AE
        • Draftsman/Overseer
        • IEO
        • ATP
        • Polytechnic Lecturer
        • AE Electronics
        • Assistant Engineer
    • Banking
      • IBPS PO Notification
      • IBPS Clerk Notification
      • SBI PO Notification
      • SBI Clerk Notification
      • SBI SO Notification
      • SBI Apprentice Notification
      • Canara Bank PO Notification
      • Indian Bank PO Notification
      • RBI Assistant Notification
      • RBI Office Attendant Notification
      • IBPS RRB Notification
      • IBPS RRB Office Assistant Notification
    • Skilling
      • Coding
      • Spoken English
      • Stock Market
        • Share Market Today News
        • Share Market Analysis
      • Digital Marketing
      • Accounting Course
      • SAP
      • OET
      • German
      • IELTS
      • Quantity Survey
      • MEP
      • Structural Design
      • Montessori
      • Yoga Teaching
      • Oil and Gas
    • Courses
      • Data Science Course
        • Data Science Malayalam
        • Data Science Course in Tamil
        • Data Science Course in Telugu
        • Data Science Training in Kochi
        • Data Science Training in Trivandrum
        • Data Science Course in Calicut
        • Data Science Training in Thrissur
      • Data Analytics Course
        • Data Analytics Course in Malayalam
        • Data Analytics Course in Tamil
        • Data Analytics Course in Telugu
      • BIM Course in Kerala
      • Quantity Surveying Course
        • Quantity Surveyor Course in Tamil
        • Quantity Surveying Course in Telugu
        • Quantity Surveyor Course in Hyderabad
        • Quantity Surveying Course in Chennai
        • Quantity Surveying Course in Vijayawada
        • Quantity Surveying Course in Guntur
        • Quantity Surveying Course in Warangal
        • Quantity Surveying Course in Karimnagar
      • Structural Design Course
        • Steel Structure Design Course
        • RCC Design Course
      • MEP Course
        • MEP Quantity Surveying Course
        • MEP Design Course in Kerala
        • HVAC Course
        • MEP Course in Kochi
      • Embedded System Course
      • Full Stack Developer Course
        • Full Stack Development Malayalam
        • Full Stack Development Hindi
        • Full Stack Development Tamil
        • Full Stack Development Telugu
        • Full Stack Development Kannada
      • Stock Market Course
        • Stock Market Course in Malayalam
        • Stock Market Course in Tamil
        • Stock Market Course in Kannada
        • Options Trading Course
      • Mutual Funds Course
      • Forex Trading Course
      • Spoken English Course
        • Spoken English Course in Malayalam
        • Spoken English Course in Hindi
        • Spoken English Course in Telugu
        • Spoken English Course in Tamil
        • Spoken English Course in Kannada
      • Python Programming Course
      • AI Powered Flutter
      • Ui Ux Designer Course
      • Software Testing Course
        • Software Testing Course in Malayalam
        • Software Testing Course in Tamil
        • Software Testing Course in Telugu
      • AWS Solutions Architect Associate Course
      • PwC Edge : Strategic Accounting and Finance Programme
      • Practical Accounting Course
        • Accounting Course in Malayalam
        • Accounting Course in Tamil
        • Tally Course
        • Taxation Course
        • UAE Accounting
        • GST Course
        • Zoho Books Training
        • GST Practitioner Course in Kerala
        • GCC VAT Course
      • ACCA Training Online
        • ACCA Course in Kerala
      • SAP Training Courses
        • SAP FICO Course
        • SAP MM Course
        • SAP SD Training
        • SAP FICO Course in Tamil
        • SAP MM Course in Tamil
      • HR Management Course
      • Performance Marketing Course
      • Mern Stack Developer Course
        • Full Stack Developer Course in Kochi
        • Full Stack Developer Course in Trivandrum
        • Full Stack Developer Course in Calicut
        • Full Stack Developer Course in Pune
        • Full Stack Developer Course in Bangalore
        • Full Stack Developer Course in Hyderabad
        • Full Stack Developer Course in Chennai
        • Full Stack Developer Course in Indore
        • Full Stack Developer Course in Jaipur
        • Full Stack Developer Course in Coimbatore
      • Digital Marketing Training
        • Digital Marketing Course in Kochi
        • Digital Marketing Course in Trivandrum
        • Digital Marketing Course in Calicut
        • Digital Marketing Course in Kollam
        • Digital Marketing Course in Thrissur
        • Digital Marketing Course in Kottayam
        • Digital Marketing Course in Kannur
      • Montessori Teacher Training
        • Montessori Teacher Training in Calicut
        • Montessori Teacher Training in Kochi, Ernakulam
        • Montessori Teacher Training in Trivandrum
        • Montessori Teacher Training in Kollam
        • Montessori Teacher Training in Malayalam
        • Montessori Teacher Training in Kannada
      • Other Courses
        • German Language Course
        • OET Coaching
        • DHA Course
        • MOH Exam Coaching
        • Nurses Recruitment Abroad
        • FMGE Coaching
        • ChatGPT Course
        • Forex Trading Course
        • Yoga Teacher Training Course
        • Diploma in Early Childhood Care and Education
        • Business Administration & Hospital Management Course
        • Hospital and Healthcare Administration
        • AI for Teachers Course
    • Others
      • Railway
        • RRB Technician Notification
        • RRB JE Notification
        • RRB ALP Notification
        • RRB NTPC Notification
        • RRB RPF Notification
        • RRB RPF SI Notification
        • RRB RPF Constable Notification
        • RRB Group D Notification
        • RRB RPSF SI Notification
        • RRB SSE Notification
      • SSC
        • SSC CPO Notification
        • SSC MTS Notification
        • SSC CGL Notification
        • SSC CHSL Notification
        • SSC GD Constable Notification
        • SSC Stenographer Notification
        • SSC JE Notification
        • SSC CAPF Notification
        • SSC JHT Notification
        • Delhi Police Constable Notification
        • Delhi Police SI Notification
      • GATE
      • MAT
      • KMAT
        • KMAT Kerala 2024
      • TET
        • APTET
        • CTET
        • DSSSB
        • Karnataka TET
        • Kerala TET
        • KVS
        • MPTET
        • SUPER TET
        • TNTET
        • TSTET
        • UPTET
      • UPSC
        • UPSC CAPF Notification
        • UPSC CDS Notification
        • UPSC NDA Notification
        • UPSC Civil service Notification
    • Free Learn
      • Free Courses
        • Free Coding Courses
        • Free Accounting Courses
        • Free Digital Marketing Courses
        • Engineering Upskilling Courses
        • Free Hospital Administration Courses
        • Free OET Training
        • Free SAP Courses
        • Free German Courses
        • Free IELTS Courses
        • Free Teachers Training Courses
        • Free Trading Courses
      • Question Answer
      • Aptitude Questions
      • Webinars
    • Test Prep
      • Kerala PSC Coaching
        • KPSC Degree Level Exam Preparation
        • Kerala PSC 12th Level Exam Preparation
        • Kerala PSC 10th Level Exam Preparation
        • KAS Coaching
        • Kerala PSC LDC Coaching
        • Kerala PSC LD Typist Coaching
        • Kerala PSC Fireman Coaching
        • KSFE Assistant Exam Preparation
        • Secretariat Office Attendant Coaching
        • Secretariat Assistant Coaching
        • Kerala PSC SI Exam Coaching
        • Khadi Board LDC Exam Preparation
        • Devaswom Board LDC Coaching
        • University LGS Exam Preparation
        • University Assistant Exam Coaching
        • KPSC Scientific Officer Exam Coaching
        • KPSC Probation Officer Grade II
        • KPSC Food Safety Officer Coaching
        • KWA Sanitary Chemist Coaching
        • KPSC Diary Farm Instructor Exam Coaching
        • Kerala PSC KWA Lab Assistant Exam Coaching
        • Kerala PSC ICDS Supervisor Exam Coaching
        • KPSC Finger Print Searcher Coaching
        • Kerala PSC Welfare Officer Gr. II Exam Coaching
        • KPSC Assistant Dental Surgeon Coaching
      • KPSC Teaching Exams
        • HSA Exam Preparation
        • KPSC HSA Social Science Coaching
        • KPSC HSA Physical Science Coaching
        • KPSC HSA English Coaching
        • KPSC Junior Language Teacher Hindi
        • KTET Coaching
        • SET Coaching
        • LP/UP Assistant Exam Coaching
        • HSST Exam Preparation
        • HSST Commerce Exam Coaching
        • Kerala PSC Lecturer in Diet Coaching
        • KVS PGT/TGT Coaching
      • Kerala PSC Technical Exams Coaching
        • Assistant Engineer Electrical Exam Coaching
        • Assistant Engineer Electronics Coaching
        • Assistant Engineer Mechanical Coaching
        • Kerala PSC Industries Extension Officer Coaching
        • KPSC LSGD AE Exam Coaching
        • KPSC Civil Engineering Exam Coaching
        • KPSC Mechanical Engineering Exam Coaching
        • KPSC Electrical Engineering Exam Coaching
        • KPSC Electronics Engineering Exam Coaching
        • KPSC Technical Computer Science Coaching
        • KPSC Tradesman Turning Coaching
        • Kerala PSC Overseer Exam Coaching
        • KPSC Assistant Town Planner Coaching
        • Lecturer in Polytechnic Electronics Coaching
      • Teaching Exams Coaching
        • CSIR NET Exam Coaching
        • EMRS Coaching
        • CTET Exam Online Coaching
      • IELTS Training Online
      • Bank Exam Coaching Online
        • SEBI Grade A Coaching
        • IBPS SO Online Coaching
        • IBPSC PO Online Coaching
        • IBPSC Clerk Online Coaching
        • SBI PO Coaching
        • SBI Clerk Online Coaching
        • SBI Apprentice Class
        • SBI SO Online Coaching
        • RBI Grade B Coaching
        • RBI Assistant Coaching
        • CSEB Exam Coaching
        • IBPS RRB Coaching
        • IBPS RRB PO Coaching
        • Canara Bank Po Exam Coaching
        • Kerala Gramin Bank Coaching
        • Kerala Bank Exam Coaching
        • JCI Exam Coaching
        • NABARD Grade A Coaching
        • LIC AAO Coaching Online
      • UPSC Online Coaching
        • UPSC CAPF Online Coaching
      • SSC Online Coaching
        • SSC JE Online Coaching
        • SSC CGL Coaching
        • SSC CGL AAO Coaching
        • SSC CHSL Coaching
        • SSC CGL CBI Inspector Coaching
        • SSC MTS Coaching
        • SSC Stenographer Coaching
        • SSC GD Online Coaching
      • RRB Exams Coaching
        • RRB RPF Exam Coaching
        • RRB NTPC Exam Coaching
        • RRB JE Online Coaching
        • RRB JE Electronics Coaching
        • RRB ALP Exam Coaching
        • RRB Technician Exam Coaching
      • CAT Online Coaching
      • CMAT Online Coaching
      • XAT Exam Coaching
      • GATE Online Coaching
        • GATE CE Online Coaching
        • GATE ME Online Coaching
        • GATE EE Online Coaching
      • NMAT Exam Coaching
        • AAI ATC Jr Executive Coaching
      • Cochin Shipyard Executive Trainee Coaching
      • BEL Probationary Engineer Coaching
      • HPCL Junior Executive Coaching

    © 2023 Entri.app - Privacy Policy | Terms of Service

    Chat