During a depression or recession what would most likely to happen to interest rates?

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2026-03-13 20:55

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During a depression or recession, interest rates typically decrease as central banks aim to stimulate economic activity. Lowering interest rates makes borrowing cheaper, encouraging spending and investment. Additionally, reduced consumer and business confidence often leads to decreased demand for loans, prompting further rate cuts. Overall, the goal is to support economic recovery by making credit more accessible.

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