Interest Rate


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Interest Rate

 

the rate of interest for loaning money, the ratio of the amount of income from a loan to the total loan.

In precapitalist formations, usurious credit was the basic form of credit, and if no special legislative restriction existed in a country, the interest rate had virtually no limit. Under capitalism, the interest rate fluctuates within the average profit rate, depending on the supply and demand for loan capital. Nowadays, it is also influenced by inflation processes, international flows of capital, the state-monopoly regulation of credit, and other factors. Under socialism, the interest rate is set by the state in a planned manner and is not subject to spontaneous fluctuations.

References in periodicals archive ?
The bank also decided to cut 1% on the interest rate of a three-year investment certificate, down to 14% compared to 15% and the return is disbursed every 3 months.
One of the key elements we should work on is to try to identify the impact of interest rate on the economic growth.
'These responses suggest that given a trade-off, more of the respondents will prefer higher interest rates to higher inflation, which is suggestive of the respondent households' support for the bank's price stability objective,' the report stated.
Some types of consumer interest rates are directly tied to the(https://www.fool.com/investing/2018/05/15/the-federal-funds-rate-what-it-means-to-you.aspx) federal funds rate, and therefore can be expected to increase immediately as a result of the Fed's rate hike:
Interest rates were relatively steady during the period so that when the market started to recover after eight months, the rates were almost unchanged.
Alternatively, a lower steady-state nominal interest rate could reflect the decline in the equilibrium real interest rate.
Another way of estimating what real interest rates are expected to be in the longer run is to calculate what markets expect them to be on average between five and ten years from now.
The main categories of interest rates on loans to non-financial corporations also registered decreases.
Through these two channels, interest rate risk can impact the financial condition of banks in many ways.
Only the results for the interest rate variables are reported because of space limitations.
Swiss Re's latest sigma 4/2012, Facing the interest rate challenge, explores how interest rates affect insurers and explains why a rapid rise in or sustained low interest rates can be a challenge.