Low interest rates have a major impact on the economy. When interest rates are low, businesses and consumers have access to more money, as they pay less in interest to borrow money. This encourages spending, as businesses and consumers are more likely to take out loans and use their money to purchase goods and services. As a result, businesses have more money to invest in their operations, which can lead to job creation and economic growth. Low interest rates also allow governments to borrow money at a lower cost, allowing them to fund public projects, such as infrastructure and education. Low interest rates can also reduce the value of investments, as there is less incentive to invest in bonds and other fixed-income securities. Ultimately, low interest rates can have both positive and negative effects on the economy, depending on the specific situation.