Why it matters
It decides how much people pay on loans and mortgages and how much savers earn, and it is the main tool for fighting inflation.
Interest rate in the news
More Economy terms
Economy
Central bank
The public institution that manages a country's currency, money supply and benchmark interest rate, such as the Federal Reserve or the Reserve Bank of India.
Economy
Inflation
The rate at which the general level of prices for goods and services rises over time, usually measured over twelve months.
Economy
National debt
The total amount a government owes to lenders, built up from past budget deficits.