2. Interest Rate
As banks offer higher deposit rate, households tend to save more, and hence consume less today.
Similarly, as banks charge higher lending rate, households will likely borrow less, and hence be able to consume less today.
This is especially true for big-ticket items (mostly durable goods such as house, car, etc.) WHY?
So, as interest rates rise, consumption curve shifts downward.
In other words, interest rate and consumption have a negative relationship.