One of the key factors that provide impetus to stronggrowth is Interest Rates. How do interest ratescontribute to the growth of economy - particularly whenthese are lowered down?(1) It gives corporations the opportunity to prepay highcost debts and replace them with fresh funds raised atlower rates.(2) Banks use this opportunity to maximize profits ontheir treasury operations and these excess profits areused to clean their Balance Sheets by making higherprovisions for NPAs or sticky loans.(3) The Govt also gets benefited as it can borrow fundsfrom open market at low interest rates and bridge itsfiscal deficit.