1.   By slowing economic growth, higher rates can lower the threat of rising inflation, cooling demand for gold as a hedge against inflation.

2.   Cash-poor banks are less likely to take chances and bid the repo rate lower.

3.   Falling rates lower borrowing costs for companies and make the return on stocks relatively more attractive than bonds.

4.   Falling rates also lower the cost of borrowing for companies and individuals, boosting demand for consumer products.

5.   Falling rates lower the cost of doing business for all types of companies.

6.   Higher U.S. rates will lower demand for Canadian exports and raise the probability the Bank of Canada will raise borrowing costs to support the Canadian dollar.

7.   Jones added that if rates lowered via negotiations always were retroactive or came with penalties and refunds, they more likely would be challenged and delayed.

8.   Lower rates would lower the cost of borrowing, boosting corporate profits and consumer spending.

9.   The surge, which continued Friday despite positive news on consumer inflation, frustrates the Federal Reserve, which has aggressively tried push rates lower to help the economy.

10.   But declining rates also lower the return to investors on everything from bank deposits to government bonds.