How do central banks influence interest rates through savings behavior in an economy?

Central banks influence interest rates by adjusting the amount of money in the economy, which affects how much people save and spend. When a central bank lowers interest rates, it becomes cheaper to borrow money, encouraging people to take loans for things like homes and cars. As people borrow more, they tend to spend more, which can reduce the amount they save. For example, if a central bank cuts interest rates, a family might decide to buy a new car instead of saving for it, leading to more spending in the economy. Conversely, if interest rates rise, saving becomes more attractive, as people earn more from their savings, leading to less spending and more saving overall.