Interest rate
Also called: rate of interest, interest rates
The price of money, paid by borrowers and earned by savers and lenders, usually expressed as a percentage a year.
Interest rates reflect expected inflation, the risk of not being repaid, the length of the loan, and the central bank's policy rate. They affect company borrowing costs, customer demand and the value investors place on future profits.
Learn more in these lessons
- Interest ratesWhy do interest rates matter so much for companies and share prices?
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