WORLD FINANCIAL MARKET: CURRENT SITUATION AND ANALYSIS OF FINANCIAL CENTERS

Abstract

This study explores the intricate relationship between financial markets and interest rates, examining the multifaceted ways in which changes in interest rates impact various aspects of the global financial landscape. The research aims to provide a comprehensive analysis of the dynamic interactions between these two critical components, highlighting their interrelations and implications for economic stability and investment strategies. The investigation begins by exploring the primary role of interest rates as a key determinant of borrowing costs affecting both consumers and businesses. It examines how changes in interest rates can stimulate or hinder economic growth, considering the complex mechanisms through which these changes influence consumer spending, corporate investments, and overall market sentiment. The study also investigates the dependency of private sector loans issued by banks on interest rate fluctuations. Additionally, the research delves into the role of financial markets as a barometer of economic health and a transmission channel for interest rate changes. Furthermore, the study evaluates the effectiveness of central banks' interest rate policies as a tool for monetary control and assesses the challenges they may face in managing a complex and interconnected global financial system.