Interest rates always play a critical role in the economy, even when they’re not dominating business and news cycles. What factors determine interest rates, and how do interest rates impact decisions in finance, other businesses and the economy at large?

In this video, Simon Williams unravels the various parts of an interest rate and how they work together to drive key decisions for deals, loans and investments in any stage of the business cycle. He covers:

• Components of an interest rate
• The link between the risk-free rate and GDP growth and inflation
• The time value of money
• Credit spreads, risk premiums and their impact on interest rates

Click here for a transcript of this video.