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: 2.22706660 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 2.23 100.00 3.75 100.00 2025-10-30 2.23 100.00 4.00 106.67 2025-10-01 2.23 100.00 4.25 113.33 2025-09-18 2.34 104.85 4.25 113.33 2025-07-01 2.34 104.85 4.50 120.00 2025-04-01 2.36 105.77 4.50 120.00 2025-01-01 2.15 96.35 4.50 120.00 2024-12-19 2.53 113.77 4.50 120.00 2024-11-08 2.53 113.77 4.75 126.67 2024-10-01 2.53 113.77 5.00 133.33 2024-09-19 2.72 122.08 5.00 133.33 2024-07-01 2.72 122.08 5.50 146.67 2024-04-01 3.04 136.36 5.50 146.67 2024-01-01 2.90 130.30 5.50 146.67 2023-10-01 3.20 143.52 5.50 146.67 2023-07-27 3.24 145.32 5.50 146.67 2023-07-01 3.24 145.32 5.25 140.00 2023-05-04 2.83 127.05 5.25 140.00 2023-04-01 2.83 127.05 5.00 133.33 2023-03-23 2.28 102.41 5.00 133.33 2023-02-02 2.28 102.41 4.75 126.67 2023-01-01 2.28 102.41 4.50 120.00 2022-12-15 1.32 59.11 4.50 120.00 2022-11-03 1.32 59.11 4.00 106.67 2022-10-01 1.32 59.11 3.25 86.67 2022-09-22 2.30 103.11 3.25 86.67 2022-07-28 2.30 103.11 2.50 66.67 2022-07-01 2.30 103.11 1.75 46.67 2022-06-16 2.48 111.31 1.75 46.67 2022-05-05 2.48 111.31 1.00 26.67 2021-12-11 5.72 256.96 0.25 6.67 2020-12-11 -1.02 -45.74 0.25 6.67 2019-12-11 3.35 150.50 2.25 60.00 2018-12-11 2.13 95.42 2.75 73.33 2017-12-11 2.99 134.44 1.75 46.67 2016-12-11 2.18 97.96 1.00 26.67 2015-12-11 2.12 95.19 0.75 20.00 2014-12-11 2.69 120.60 0.75 20.00 2013-12-11 3.01 135.12 0.75 20.00 2012-12-11 1.55 69.68 0.75 20.00 2011-12-11 1.54 69.29 0.75 20.00 2010-12-11 2.78 124.65 0.75 20.00 2009-12-11 0.11 4.74 0.50 13.33 2008-12-11 -2.54 -114.10 1.25 33.33 2007-12-11 2.13 95.79 4.75 126.67 2006-12-11 2.63 118.30 6.25 166.67 2005-12-11 2.97 133.48 5.00 133.33 2004-12-11 3.35 150.47 3.00 80.00 2003-12-11 4.30 193.10 2.00 53.33 2002-12-11 1.99 89.47 2001-12-11 0.17 7.51 2000-12-11 2.91 130.47 1999-12-11 4.82 216.59 1998-12-11 4.88 219.26 1997-12-11 4.48 201.32 1996-12-11 4.42 198.53 1995-12-11 2.20 98.78 1994-12-11 4.12 184.82 1993-12-11 2.61 117.09 1992-12-11 4.38 196.79 1991-12-11 1.17 52.37 1990-12-11 0.60 27.08 1989-12-11 2.74 123.18 1988-12-11 3.80 170.60 1987-12-11 4.47 200.92 1986-12-11 2.91 130.54 1985-12-11 4.18 187.80 1984-12-11 5.58 250.36 1983-12-11 7.90 354.71 1982-12-11 -1.44 -64.80 1981-12-11 1.30 58.36 1980-12-11 -0.04 -1.75 1979-12-11 1.28 57.66 1978-12-11 6.66 299.03 1977-12-11 5.01 225.11 1976-12-11 4.31 193.60 1975-12-11 2.55 114.72 1947-01-01 0.00 0.00
⇒ Introduction to US Interest Rates
⇐ Relation of Inflation and Interest Rates
2025-01-31, ∼1376🔥, 0💬
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