One of the primary factors that cause interest rates to rise is the state of the economy.
Economic indicators such as GDP, employment, and inflation can have an impact on interest rates.
If the economy is doing well, it is likely that interest rates will rise.
This is because businesses and individuals will demand more credit to invest in their ventures, which in turn puts pressure on interest rates to rise.
Government Policies and Regulations: Government policies can also affect interest rates.
For example, the government can regulate the amount of money that banks can lend out or increase reserve requirements, which can limit the supply of credit and cause interest rates to rise.
In addition, the government can also issue bonds to finance public spending, which can increase the supply of bonds and put pressure on interest rates to rise.
Monetary Policies and the Role of Central Banks: The monetary policies of central banks can also affect interest rates.