The two faces of low interest rates

Low interest rates have meaning to consumers, savers, investors, businesses, governments, and the wider economy, affecting them in positive and negative ways. For consumers, low interest rates open the door to opportunities to acquire consumables like clothing, consumer durables like furniture and appliances, and assets such as motor vehicles and housing – what many Jamaicans consider the dream asset. Housing becomes more affordable because borrowed funds for construction cost less and mortgage rates fall, making it easier to fulfil life goals.