What does it mean???

Central Bank raises interest rates
1. More expensive to get loans, less loans given
2 Less money circulating less buying power and activity
3 economy slows down

Central Bank lowers rates
1 cheaper price of loans
2 banks give out more loans
3 consumer borrow to buy cars and houses, business borrow for capital expenditures


Higher interest rates attracts deposits in that currency to earn more, currency up