WHEN DO CENTRAL BANK DECIDE TO INCREASE INTEREST RATE's ?

There are several factors that central banks consider when deciding to raise interest rates:

1. Inflation: Central banks may raise interest rates to control inflation. When inflation rises above the central bank's target, it can be an indication that the economy is overheating, and raising interest rates can help to cool it down.

2. Economic growth: Central banks may raise interest rates to slow down economic growth and prevent the economy from overheating. This is done to avoid inflation and maintain stable economic growth.

3. Unemployment: Central banks may raise interest rates to reduce inflationary pressure caused by low unemployment rates. When unemployment is low, it can lead to wage inflation, which can push up consumer prices.

4. Currency stability: Central banks may raise interest rates to support their currency and prevent it from losing value. When interest rates are higher in one country than another, it can attract foreign investment and lead to a stronger currency.

5. External factors: Central banks may also consider external factors such as geopolitical risks, global economic conditions, and financial market stability when making decisions about interest rates.

It's important to note that central banks have different goals and priorities, and they may have different factors that they consider when deciding to raise interest rates.