- interest rate
- The monthly effective interest rate. For example, the periodic rate on a credit card with an 18% annual percentage rate is 1.5% per month.
__Bloomberg Financial Dictionary__* * *

the percentage rate used for calculating interest over a particular period of time, usually one year:**interest rate of****• The credit card has an interest rate of 14.8%.****• The fear of****higher interest rates**is driving down the stockmarket.**• The****fall in interest rates**should lead to additional business investment.* * *

The cost paid by a borrower to a lender over a period of time, often calculated annually. It is intended to compensate lenders for the sacrifice of losing immediate use of their money, for the inflationary erosion of buying power over the life of the loan, and for the risk involved in lending.* * *

**interest rate**__UK____US____noun__[__C__] (**also****rate of interest**)__BANKING__,__FINANCE__**►**the percentage amount that you pay for borrowing money, or get for lending money, for a period of time, usually a year: »»a 7% interest rate

»an interest rate of 7%

a

*high/low/zero interest rate***rising/falling interest rates**»»Falling interest rates acted as a tax cut for households.

»rumours of

*an interest rate rise*»may affect present and future cash flows of the company.*Interest-rate fluctuations*»causes the value of existing bonds to fall.*A rise in the interest rate*»The government may

to boost growth.*cut interest rates*»The bank has decided to

.*leave interest rates unchanged*»Some cards

over 16%.*charge an interest rate of*»The National Bank has

6%.*set the interest rate at*»a

*variable/fixed interest rate**long-term/short-term interest rates*

*Financial and business terms.
2012.*