Economic Indicator Series Part 4 of 5 – Interest Rates: How Rates Work, Why They Move & What to Watch

This presentation is Part 4 of the 5-part Economic Indicators Series presented by Dr. Jason Dean, an economist who received a BBA from Wilfrid Laurier University, an MA in Economics from the University of Guelph and a PhD in Economics from McGill University, and who teaches macroeconomics, microeconomics, applied econometrics and labour economics.

It provides a practical framework for understanding how interest rates are constructed, controlled, transmitted and priced, covering real and nominal rates, inflation expectations, default and liquidity risk, term premiums, overnight markets, central-bank corridor systems, open-market operations and monetary-policy transmission. The presentation also examines long-term yields, normal and inverted yield curves, policy announcements, quantitative easing, mortgages, business credit, equities, bonds, currencies, pensions, leases, valuations and historical rate cycles. Although it does not address a specific legal framework or case law, it offers legal and business professionals’ valuable guidance for assessing borrowing costs, refinancing risk, contractual rate provisions, valuation assumptions, financial exposure and the practical consequences of changing monetary conditions.