  Financial decisions are the decisions that managers take with regard to the
finances of a company. This article aims to examine and explain the effect of
interest rates on economic and financial decisions such as investment, funding,
and dividend in a firm. This research uses the correlation coefficient analysis
methods and descriptive methods to illustrate the relationship between interest
rates and financial decisions. The data used in this research was obtained from
several government reports and leading economic sources. The results of this
research show that interest rates have a negatively insignificant effect on
investment and funding decisions, but positively moderate effect on dividend
decisions.
