- 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
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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.
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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
»Interest-rate fluctuations may affect present and future cash flows of the company.
»A rise in the interest rate causes the value of existing bonds to fall.
»The government may cut interest rates to boost growth.
»The bank has decided to leave interest rates unchanged.
»Some cards charge an interest rate of over 16%.
»The National Bank has set the interest rate at 6%.
»a variable/fixed interest rate
»long-term/short-term interest rates
Financial and business terms. 2012.
