Relation of GDP and Interest Rates
Q
What Is the Relationship Between GDP and Interest Rates?
✍: FYIcenter.com
A
The Relationship Between GDP and Interest Rates can be summarized as:
- Interest rates and inflation tend to move in the same direction, but with some delay.
- Central banks raise interest rates to cool the economy, when GDP is growing too fast.
- Central banks lower interest rates to stimulate the economy , when GDP is shrinking, or not growing.
The history of US GDP growth rates and US Fed discount rates is provided below:
Compare: US GDP Growth Rate US: RGDPY 2025-12-11: 2.32717325 Percent with: US Fed Discount Rate US: DISC 2025-12-11: 3.75000000 Percent US GDP Growth Rate US Fed Discount Rat RGDPY Growth% DISC Growth% ---------- ------- ---------- ------- 2025-12-11 2.33 100.00 3.75 100.00 2025-10-30 2.33 100.00 4.00 106.67 2025-09-18 2.33 100.00 4.25 113.33 2025-07-01 2.33 100.00 4.50 120.00 2025-04-01 2.36 101.22 4.50 120.00 2025-01-01 2.15 92.20 4.50 120.00 2024-12-19 2.53 108.87 4.50 120.00 2024-11-08 2.53 108.87 4.75 126.67 2024-10-01 2.53 108.87 5.00 133.33 2024-09-19 2.72 116.83 5.00 133.33 2024-07-01 2.72 116.83 5.50 146.67 2024-04-01 3.04 130.50 5.50 146.67 2024-01-01 2.90 124.69 5.50 146.67 2023-10-01 3.20 137.34 5.50 146.67 2023-07-27 3.24 139.07 5.50 146.67 2023-07-01 3.24 139.07 5.25 140.00 2023-05-04 2.83 121.58 5.25 140.00 2023-04-01 2.83 121.58 5.00 133.33 2023-03-23 2.28 98.01 5.00 133.33 2023-02-02 2.28 98.01 4.75 126.67 2023-01-01 2.28 98.01 4.50 120.00 2022-12-15 1.32 56.56 4.50 120.00 2022-11-03 1.32 56.56 4.00 106.67 2022-10-01 1.32 56.56 3.25 86.67 2022-09-22 2.30 98.68 3.25 86.67 2022-07-28 2.30 98.68 2.50 66.67 2022-07-01 2.30 98.68 1.75 46.67 2022-06-16 2.48 106.52 1.75 46.67 2022-05-05 2.48 106.52 1.00 26.67 2021-12-11 5.72 245.91 0.25 6.67 2020-12-11 -1.02 -43.77 0.25 6.67 2019-12-11 3.35 144.03 2.25 60.00 2018-12-11 2.13 91.32 2.75 73.33 2017-12-11 2.99 128.66 1.75 46.67 2016-12-11 2.18 93.74 1.00 26.67 2015-12-11 2.12 91.09 0.75 20.00 2014-12-11 2.69 115.41 0.75 20.00 2013-12-11 3.01 129.30 0.75 20.00 2012-12-11 1.55 66.68 0.75 20.00 2011-12-11 1.54 66.31 0.75 20.00 2010-12-11 2.78 119.28 0.75 20.00 2009-12-11 0.11 4.54 0.50 13.33 2008-12-11 -2.54 -109.19 1.25 33.33 2007-12-11 2.13 91.67 4.75 126.67 2006-12-11 2.63 113.21 6.25 166.67 2005-12-11 2.97 127.74 5.00 133.33 2004-12-11 3.35 144.00 3.00 80.00 2003-12-11 4.30 184.79 2.00 53.33 2002-12-11 1.99 85.62 2001-12-11 0.17 7.19 2000-12-11 2.91 124.86 1999-12-11 4.82 207.27 1998-12-11 4.88 209.83 1997-12-11 4.48 192.66 1996-12-11 4.42 189.99 1995-12-11 2.20 94.53 1994-12-11 4.12 176.87 1993-12-11 2.61 112.05 1992-12-11 4.38 188.32 1991-12-11 1.17 50.12 1990-12-11 0.60 25.91 1989-12-11 2.74 117.88 1988-12-11 3.80 163.26 1987-12-11 4.47 192.27 1986-12-11 2.91 124.93 1985-12-11 4.18 179.72 1984-12-11 5.58 239.59 1983-12-11 7.90 339.45 1982-12-11 -1.44 -62.01 1981-12-11 1.30 55.85 1980-12-11 -0.04 -1.68 1979-12-11 1.28 55.18 1978-12-11 6.66 286.17 1977-12-11 5.01 215.42 1976-12-11 4.31 185.27 1975-12-11 2.55 109.78 1947-01-01 0.00 0.00
⇒ Introduction to US Interest Rates
⇐ Relation of Inflation and Interest Rates
2025-01-31, ∼1037🔥, 0💬
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