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The Federal Reserve, the central bank of the United States, have promised to keep interest rates at rock-bottom levels for the time being. Low interest rates encourage investment by firms and spending by consumers. Rising interest rates have a negative effect on storable commodities.

This article addresses the various interest rates that the Reserve Bank of India is currently dealing with. As of now, most banks have said that "they are unlikely to raise interest rates in the immediate future." However, in dealing with the global recession, many changes are necessary and unavoidable.

The Fedeal Reserve Bank is planning for an extended period of low interests due to American high unemployment rate and increasing inflation rate. This is relevant to this week's topic because lowering interests rates would increase disposable income for more consumption, encouragte the investors to lend more money in prospect of high return rates, and ultimately increase the aggregate demand to nourish the unemployment in US.

In the US, following its slow economic recovery, employment has been going up, people being able to find jobs again, and hearing the the economy is back on foot. However, this has also given people back confidence, and has led them to fell safer when investing, and thus started to invest more, once again. As a result of this increase in demand for loans, interest rates have also increased. The consequences are still unclear.

This article gives an example of the positive impacts of a lower unemployment rate. The article mentions that as a result, interest rates will most likely increase in March.

This article is talking about Gordon Brown's policy that offers unlimited government guarantees to every bank in the country. It relates to this week's topic because Gordon Brown's aim is to keep interest rates as low to zero as possible.

This article is about how bank customers in the UK are satisfied with the bank accounts. This shows that either they are happy with their current interest rates, or that they know they won't be able to get a higher rate on their deposit.

This article is talking about the cost of home loans falling to the cheapest level in more than a year as competition amongst mortgage lenders continues to put pressure on interest rates. This relates to this week's topic because it is talking about lowering interest rates on mortgages to boost both consumer spending and corporate investment which will increase aggregate demand.

Inflation is decreasing in the UK, easing to the fear that interest rates would rise due to rising prices.

This article demonstrates several characteristics of deflation: falling prices and worth (of houses, for example), decreasing wages, and decreasing in availability of credit (and also higher interest rates). Due to all these factors, many homeowners in the United States cannot afford to pay off their mortgages or maintain their homes. This article examines the measures government is taking to address the problem and addresses whether or not these measures have a chance to succeed.

Consumer prices in Japan have dropped by 2.4% in August. This was due to lower petrol and energy costs, as well as decreased demand. The central bank says that low interest rates and stimulus packages will prevent deflation. This article shows the importance of prices in a country's economy.

This article is about how Greece has formally asked for a rescue package for its heavily indebted economy. This should help reduce Greece's debt, which will in turn reduce interest rates. This will increase consumer spending and stimulate aggregate demand.