interest rate

American  

[in-ter-ist reyt, -trist] / ˈɪn tər ɪst ˌreɪt, -trɪst /

noun

Finance.

1. Business. the amount that a lender charges a borrower for taking out a loan, for maintaining a balance on debt, etc.: typically expressed as an annual percentage of the loan balance.

2. Banking. the amount earned on a savings, checking, or money market account, or on an investment, such as a certificate of deposit or bond: typically expressed as an annual percentage of the account balance or investment sum.

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interest rate Cultural  

1. The usual way of calculating interest — as a percentage of the sum borrowed.

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Etymology

Origin of interest rate

First recorded in 1885–90

Compare meaning

How does interest-rate compare to similar and commonly confused words? Explore the most common comparisons:

• discount rate vs. interest rate

Example Sentences

Ministers will claim that the government has brought stability to the economy, allowing for the rate of inflation and, in turn, interest rates to fall.

From BBC

The Federal Reserve will almost certainly leave interest rates unchanged at its policy meeting this coming week, keeping its benchmark policy rate at 3.5% to 3.75%.

From Barron's

For most of the 2010s, hedge funds struggled to generate profits with short-term interest rates at zero, volatility at low levels and high correlations between different stocks.

From The Wall Street Journal

The Bank of Japan on Friday decided to leave its policy interest rate unchanged on Friday, but signaled more rate hikes would likely follow.

From MarketWatch

Elevated inflation is expected to spur Fed officials to leave a key interest rate unchanged on Jan. 28 after their first meeting of the new year.

From MarketWatch

Related Words

• interest