MUTUAL FUND ASSOCIATION OF TRINIDAD AND TOBAGO
"STRENGTHENING THE ENVIRONMENT FOR INVESTOR CONFIDENCE"

Impact of Changes in Interest Rates on Investment   

When we hear the term, ‘interest rate’, we immediately think of the annual amount charged on our loans and credit cards. Interest rate is not only the cost of borrowing but it also refers to the amount earned on savings and investments. In this final article in our five-part series on competent investment management, we look at the impact of fluctuations in interest rates on the value of investments. Before so doing, however, its is important to understand the role of the Central Bank of Trinidad and Tobago (“the Central Bank”) and its monetary policy in influencing domestic interest rates.

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