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 2025-09-18: 2.35563303 Percent with: US Fed Discount Rate US: DISC 2025-09-18: 4.25000000 Percent US GDP Growth Rate US Fed Discount Rat RGDPY Growth% DISC Growth% ---------- ------- ---------- ------- 2025-09-18 2.36 100.00 4.25 100.00 2025-04-01 2.36 100.00 4.50 105.88 2025-01-01 2.15 91.09 4.50 105.88 2024-12-19 2.53 107.56 4.50 105.88 2024-11-08 2.53 107.56 4.75 111.76 2024-10-01 2.53 107.56 5.00 117.65 2024-09-19 2.72 115.42 5.00 117.65 2024-07-01 2.72 115.42 5.50 129.41 2024-04-01 3.04 128.92 5.50 129.41 2024-01-01 2.90 123.19 5.50 129.41 2023-10-01 3.20 135.68 5.50 129.41 2023-07-27 3.24 137.39 5.50 129.41 2023-07-01 3.24 137.39 5.25 123.53 2023-05-04 2.83 120.11 5.25 123.53 2023-04-01 2.83 120.11 5.00 117.65 2023-03-23 2.28 96.82 5.00 117.65 2023-02-02 2.28 96.82 4.75 111.76 2023-01-01 2.28 96.82 4.50 105.88 2022-12-15 1.32 55.88 4.50 105.88 2022-11-03 1.32 55.88 4.00 94.12 2022-10-01 1.32 55.88 3.25 76.47 2022-09-22 2.30 97.48 3.25 76.47 2022-07-28 2.30 97.48 2.50 58.82 2022-07-01 2.30 97.48 1.75 41.18 2022-06-16 2.48 105.23 1.75 41.18 2022-05-05 2.48 105.23 1.00 23.53 2022-04-01 2.48 105.23 0.50 11.76 2022-03-17 4.01 170.44 0.50 11.76 2021-09-18 4.98 211.26 0.25 5.88 2020-09-18 -1.41 -59.99 0.25 5.88 2019-09-18 2.80 118.75 2.75 64.71 2018-09-18 3.13 132.87 2.50 58.82 2017-09-18 2.41 102.34 1.75 41.18 2016-09-18 1.81 76.66 1.00 23.53 2015-09-18 2.45 103.89 0.75 17.65 2014-09-18 3.06 129.89 0.75 17.65 2013-09-18 2.24 94.96 0.75 17.65 2012-09-18 2.57 109.26 0.75 17.65 2011-09-18 0.94 40.02 0.75 17.65 2010-09-18 3.34 141.97 0.75 17.65 2009-09-18 -3.13 -132.99 0.50 11.76 2008-09-18 0.27 11.29 2.25 52.94 2007-09-18 2.37 100.53 5.25 123.53 2006-09-18 2.33 98.71 6.25 147.06 2005-09-18 3.45 146.40 4.50 105.88 2004-09-18 3.49 148.36 2.50 58.82 2003-09-18 3.23 137.17 2.00 47.06 2002-09-18 2.15 91.12 2001-09-18 0.49 20.77 2000-09-18 3.97 168.67 1999-09-18 4.79 203.39 1998-09-18 4.10 174.20 1997-09-18 4.67 198.45 1996-09-18 4.05 171.93 1995-09-18 2.67 113.49 1994-09-18 4.34 184.11 1993-09-18 2.29 97.07 1992-09-18 3.67 155.60 1991-09-18 -0.10 -4.36 1990-09-18 1.73 73.33 1989-09-18 3.91 165.88 1988-09-18 4.19 178.01 1987-09-18 3.26 138.48 1986-09-18 3.12 132.41 1985-09-18 4.26 180.95 1984-09-18 6.90 292.95 1983-09-18 5.74 243.54 1982-09-18 -2.56 -108.51 1981-09-18 4.33 183.63 1980-09-18 -1.62 -68.93 1979-09-18 2.39 101.44 1978-09-18 5.25 222.74 1977-09-18 5.77 244.94 1976-09-18 4.96 210.49 1975-09-18 0.80 33.90 1947-01-01 0.00 0.00
⇒ Introduction to US Interest Rates
⇐ Relation of Inflation and Interest Rates
2025-01-31, ∼942🔥, 0💬
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