What does interest rate mean?
Definitions for interest rate
in·ter·est rate
This dictionary definitions page includes all the possible meanings, example usage and translations of the word interest rate.
Princeton's WordNet
interest rate, rate of interestnoun
the percentage of a sum of money charged for its use
Wiktionary
interest ratenoun
The percentage of an amount of money charged for its use per some period of time (often a year).
ChatGPT
interest rate
An interest rate is the percentage of a loan or debt that a borrower pays to a lender as the cost of borrowing money, or that an investor receives from their investment over a specific period of time. It's usually expressed as an annual percentage of the total amount borrowed or invested.
Wikidata
Interest rate
An interest rate is the rate at which interest is paid by borrowers for the use of money that they borrow from a lender. Specifically, the interest rate is a percent of principal paid a certain amount of times per period. For example, a small company borrows capital from a bank to buy new assets for its business, and in return the lender receives interest at a predetermined interest rate for deferring the use of funds and instead lending it to the borrower. Interest rates are normally expressed as a percentage of the principal for a period of one year. Interest-rate targets are a vital tool of monetary policy and are taken into account when dealing with variables like investment, inflation, and unemployment. The central banks or reserve banks of countries generally tend to reduce interest rates when they wish to increase investment and consumption in the country's economy. However, a low interest rate as a macro-economic policy can be risky and may lead to the creation of an economic bubble, in which large amounts of investments are poured into the real-estate market and stock market. This happened in Japan in the late 1980s and early 1990s, resulting in the large unpaid debts to the Japanese banks and the bankruptcy of these banks and causing stagflation in the Japanese economy, with exports becoming the last pillar for the growth of the Japanese economy throughout the rest of 1990s and early 2000s. The same scenario resulted from the United States' lowering of interest rate since late 1990s to the present substantially by the decision of the Federal Reserve System. Under Margaret Thatcher, the United Kingdom's economy maintained stable growth by not allowing the Bank of England to reduce interest rates. In developed economies, interest-rate adjustments are thus made to keep inflation within a target range for the health of economic activities or cap the interest rate concurrently with economic growth to safeguard economic momentum.
Matched Categories
Numerology
Chaldean Numerology
The numerical value of interest rate in Chaldean Numerology is: 5
Pythagorean Numerology
The numerical value of interest rate in Pythagorean Numerology is: 1
Examples of interest rate in a Sentence
The market needs to be coddled and gently eased into a slightly higher interest-rate environment, and that appears to be what San Francisco Fed is doing, rates need to normalize and San Francisco Fed needs to give San Francisco Fed room to lower again in the event of another financial crisis.
A mid-year lift-off in the interest rate is fait accompli ... there was good news on many fronts.
Intelligent step for investors seem is not to buy any share till Oct 2022 and if possible leave stock market for ever. But fools will remain fools and they will purchase more shares now. Till they buy shares, companies will keep dropping price and profit from it. Asian market or USA market fall, Interest rate, GDP data, inflation, FII or DII selling, Economic recession etc drama will be played as a reason for price to be lowered
The Fed did the right thing. There's no need to rock the boat right now. Again the disconcerting element is the downgrade to the interest rate trajectory, which could provide solace to investor sentiment overall, given the global headwinds, the last thing we need right now was a hike in rates and any kind of hawkish projections.
It will get us out of this artificially low interest rate environment we have now.
Translations for interest rate
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"interest rate." Definitions.net. STANDS4 LLC, 2024. Web. 18 Jun 2024. <https://www.definitions.net/definition/interest+rate>.
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