What Is Interest Rate?
Definition and plain-English explanation of "Interest Rate"
An interest rate is the cost of borrowing money or the reward for saving it, expressed as a percentage. Central banks like the Federal Reserve set benchmark rates to manage the economy. Rising rates make borrowing more expensive and tend to pressure stock and bond prices; falling rates tend to stimulate markets and the economy.
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Market Navigator Glossary — plain-English definitions of 93+ investing and crypto terms. All content is for educational purposes only and does not constitute financial advice.