Interest rates have a powerful influence on the economy, as they can affect the availability of credit and the cost of borrowing. Higher interest rates encourage people to save their money, as they can earn more interest, while lower interest rates make borrowing more affordable. This, in turn, can have a positive or negative impact on the economy, depending on the current market conditions. For example, higher interest rates can slow economic growth, as people are less likely to borrow and invest, while lower interest rates can stimulate the economy, by making credit more accessible. Therefore, it is clear that interest rates can have a significant impact on the economy and should be monitored closely.