Glossary - Interest rates
Description
The interest rate is the cost of borrowing money, or the return earned on savings or investments, expressed as a percentage over a specific period (usually annually). It represents the price paid by a borrower to a lender for the use of capital and is a key driver of economic activity, influencing spending, saving, investment decisions, and asset prices across the economy.
Alternate Names
- Real interest rate
- Variable rate
- Fixed rate
- Yield
- Base rate APR (Annual Percentage Rate)
