Question

Why is it important to pay attention to interest rates as facility manager?

Answer 1

The interest rate is the amount a lender charges for the use of assets expressed as a percentage of the principal. The interest rate is typically noted on an annual basis known as the annual percentage rate (APR).

Interest rates: a key concept in Economics. Facility management keeps spaces in proper operating conditions through routine and scheduled maintenance. A well- maintained facility creates a safe working environment, reduces energy output costs, and makes all business functions run smoothly and efficiently.as a manager of a firm analysis of intrest rate is highly important because The Federal Reserve manages inflation and recession by controlling interest rates. So pay attention to the Fed's announcements on falling or rising interest rates. A manager can reduce the risks when making financial decisions such as taking out a loan, choosing credit cards, and investing in stocks or bonds. Forecasting interest rates allows manager to predict the movement of interest rates and inform regulatory bodies and investment managers accordingly. By having an informed prediction of the movement of interest rates, markets can preemptively adapt to changing conditions.