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

Fed officials hope to see signs that inflation was contained in February, but the report was never going to sway the central bank to cut interest rates at its next meeting in eight days.

From MarketWatch

Fed officials hope to see signs that inflation was contained in February, but the report was never going to sway the central bank to cut interest rates at its next meeting in eight days.

From MarketWatch

“I don’t think they need to increase interest rates,” said Vania Stavrakeva, an assistant professor of economics at London Business School.

From The Wall Street Journal

In turn, he anticipates that higher-for-longer interest rates would depress the price of gold.

From Barron's

But markets were contending with something else entirely: high inflation and a Federal Reserve hiking interest rates.

From MarketWatch

Related Words

• interest