Why are Interest rates dropping, fuel also ?

Question

At the moment the Global resources arent exactly in the best shape, Australia is meant to be at the start of a 'Recession', Now last time (from my parents) in the 80's we had another 'Recession' and Interest Rates were almost 20%.

Why are they now dropping to almost an Australian LOW record when we're on the verge of this recession?... Hey not that I am complaining thats for sure, I'm just curious to why its happening.

I sort of get the fuel price drop, but you can also explain that if you wish..

Thanks in Advance 
Damo

cossy · Accepted Answer

mate the latest oecd estimates say that australia will miss out on the recession (we've already had the recession we had to have) im not complaining
our interset rates are still higher than most developed countries and were still paying a motza for fuel the question is why are we still paying so much for it while the oil price is so low $55 a barrel

☻☆REBEL DEVIL☆☺ · Answer

supply & demand, people started driving less when prices were getting so high, so people used less fuel. Oil companies need you to keep buying fuel so prices went down.

Anonymous · Answer

http://answers.yahoo.com/question/index;_ylt=Aj41LF80057lDwploAyKJ1Dsy6IX;_ylv=3?qid=20081125150245AAIWR7N

I just asked a vaguely similar question not that long ago. I think it has to do with the banks being able to pay back the loans the U.S. government is granting them.

Randy · Answer

Expansionary monetary policy by reducing interest rates, people should borrow more and spend more.

Trending News

Why are Interest rates dropping, fuel also ?

4 Answers