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The base rate - what is it? The meaning of a word, definition, origin, translation

What is the Base Rate

The base rate is the percentage by which the Central Bank of any country (for example, the US Federal Reserve ) lends to commercial banks and takes money from them for deposits. The Russian Central Bank calls its base rate a key stake , so these concepts are almost equivalent to taking into account the specifics of a particular country.

News of the day: The Fed raised the base rate for the first time since 2008. Read more ...

The value of the base rate in each country is determined by the Central Bank itself, based on its inflationary policy and the situation in the financial markets. From the base rate depends very much in the economy: the higher it is, the more "expensive" the country's loans and the less the average rate of profit in the economy.

The base rate in the US is called in English Federal funds rate , that is, the "Federal Stock Rate".

The base rate is in the list: Finance

You learned where the word Basic Rate came from in simple words, its translation and meaning.
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