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

  1. interest rate, rate of interestnoun

    the percentage of a sum of money charged for its use

Wiktionary

  1. interest ratenoun

    The percentage of an amount of money charged for its use per some period of time (often a year).

ChatGPT

  1. 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

  1. 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

How to pronounce interest rate?

How to say interest rate in sign language?

Numerology

  1. Chaldean Numerology

    The numerical value of interest rate in Chaldean Numerology is: 5

  2. Pythagorean Numerology

    The numerical value of interest rate in Pythagorean Numerology is: 1

Examples of interest rate in a Sentence

  1. Tim Ghriskey:

    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.

  2. Sung Won Sohn:

    A mid-year lift-off in the interest rate is fait accompli ... there was good news on many fronts.

  3. Lakshheish M Patel:

    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

  4. Brian Dolan:

    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.

  5. Jason Furman.However:

    It will get us out of this artificially low interest rate environment we have now.


Translations for interest rate

From our Multilingual Translation Dictionary

Get even more translations for interest rate »

Translation

Find a translation for the interest rate definition in other languages:

Select another language:

  • - Select -
  • 简体中文 (Chinese - Simplified)
  • 繁體中文 (Chinese - Traditional)
  • Español (Spanish)
  • Esperanto (Esperanto)
  • 日本語 (Japanese)
  • Português (Portuguese)
  • Deutsch (German)
  • العربية (Arabic)
  • Français (French)
  • Русский (Russian)
  • ಕನ್ನಡ (Kannada)
  • 한국어 (Korean)
  • עברית (Hebrew)
  • Gaeilge (Irish)
  • Українська (Ukrainian)
  • اردو (Urdu)
  • Magyar (Hungarian)
  • मानक हिन्दी (Hindi)
  • Indonesia (Indonesian)
  • Italiano (Italian)
  • தமிழ் (Tamil)
  • Türkçe (Turkish)
  • తెలుగు (Telugu)
  • ภาษาไทย (Thai)
  • Tiếng Việt (Vietnamese)
  • Čeština (Czech)
  • Polski (Polish)
  • Bahasa Indonesia (Indonesian)
  • Românește (Romanian)
  • Nederlands (Dutch)
  • Ελληνικά (Greek)
  • Latinum (Latin)
  • Svenska (Swedish)
  • Dansk (Danish)
  • Suomi (Finnish)
  • فارسی (Persian)
  • ייִדיש (Yiddish)
  • հայերեն (Armenian)
  • Norsk (Norwegian)
  • English (English)

Word of the Day

Would you like us to send you a FREE new word definition delivered to your inbox daily?

Please enter your email address:


Citation

Use the citation below to add this definition to your bibliography:

Style:MLAChicagoAPA

"interest rate." Definitions.net. STANDS4 LLC, 2024. Web. 18 Jun 2024. <https://www.definitions.net/definition/interest+rate>.

Discuss these interest rate definitions with the community:

0 Comments

    Are we missing a good definition for interest rate? Don't keep it to yourself...

    Image or illustration of

    interest rate

    Credit »

    Free, no signup required:

    Add to Chrome

    Get instant definitions for any word that hits you anywhere on the web!

    Free, no signup required:

    Add to Firefox

    Get instant definitions for any word that hits you anywhere on the web!

    Browse Definitions.net

    Quiz

    Are you a words master?

    »
    an unfortunate mishap; especially one causing damage or injury
    A accident
    B suffering
    C endeavor
    D plantation

    Nearby & related entries:

    Alternative searches for interest rate: