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Interest rate expectation

Former userFormer user3y ago

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John MoffatJohn MoffatTutor3y ago#1
It is talking about fixed interest borrowing (long-term borrowing is generally at a fixed interest rate). If the lender expects that interest rates will fall in the future then the field interest interest rates on longer term borrowing that they quote today will be lower than what they quote for short-term borrowings. I do make this point in my free lectures.
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