Interest Rate
The cost of borrowing money. The policy rate set by a central bank anchors the rates throughout an economy, from bond yields to mortgages.
Also called rates · policy rate · rate cut · rate hike
The cost of borrowing money. The policy rate set by a central bank anchors the rates throughout an economy, from bond yields to mortgages.
Why it matters
Rates affect nearly every asset price at once, because they change the return available from simply holding cash.
Related terms
- Central Bank
- Yield
- Inflation
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