Interest Rate
An interest rate is the price of borrowing money, expressed as a percentage of the amount borrowed over a period.
Why It Matters
It changes which projects are worth doing. Higher rates hit long-dated investments hardest, including much of technology and property.
Related Terms
- Monetary PolicyMonetary policy is a central bank's management of interest rates and the money supply, usually to keep inflation near a target.
- Cost of CapitalThe cost of capital is the return a company must earn to justify using money, blending what it pays lenders with what shareholders expect.
- Yield CurveThe yield curve plots the interest rates on government bonds of different maturities, showing what lenders demand for tying money up for longer.
- Treasury YieldA treasury yield is the return on government debt, most often quoted for the ten-year bond of a major economy.
VANTAGE52 Coverage
Published reporting filed under the topics behind this concept.
Global Economy
Fed Raises Rates as Inflation Keeps Pressure on the U.S. Economy
The Federal Reserve raised its benchmark interest rate to 3.75%–4.00% as persistent inflation keeps monetary policy under pressure.
Markets
Why A 5% U.S. Treasury Yield Could Reshape Global Markets
The 10-year is nearing a level that reprices mortgages, deals and every distant future earning.
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