 An interest rate channel may be categorized as traditional, which means monetary policy affects real (rather than nominal) interest rates, which influence investment, spending on new housing, consumer spending, and aggregate demand.An easing of monetary policy in the traditional view leads to a decrease in real interest rates, which lowers the cost of borrowing resulting in greater investment spending, which results in an overall increase in aggregate demand.Apart from the traditional channel which focuses on effects as a result of changes to the interest rate, additional methods exist to allow monetary policy to achieve the desired economic results and changes in aggregate demand, but through different channels categorized as the credit view.