key interest rate

  • 1key lending rate — UK US noun [C] BANKING, FINANCE, ECONOMICS ► one of the main interest rates set by a central bank (= a country s official bank), influencing the rates of banks that offer services to businesses and the public: »The central bank halved its key… …

    Financial and business terms

  • 2Interest Rate Differential - IRD — A differential measuring the gap in interest rates between two similar interest bearing assets. Traders in the foreign exchange market use interest rate differentials (IRD) when pricing forward exchange rates. Based on the interest rate parity, a …

    Investment dictionary

  • 3Initial Interest Rate — The interest rate that is initially assessed on an adjustable rate mortgage (ARM) and advertised in the origination process. The initial interest rate will be in force for a limited period of time, typically between 12 and 24 months. After this… …

    Investment dictionary

  • 4Retroactive Interest Rate Increase — A common practice used in the credit card industry to increase interest rates on purchases made in the past. A retroactive interest rate increase will affect your outstanding balance. This is often viewed as an unfair lending practice because… …

    Investment dictionary

  • 5Net Interest Rate Spread — The difference between the average yield a financial institution receives from loans and other interest accruing activities and the average rate it pays on deposits and borrowings. The net interest rate spread is a key determinant of a financial… …

    Investment dictionary

  • 6rate — The cost of debt service paid by a borrower or issuer to a lender or investor. The rate is expressed as an annual percentage of the amount borrowed. For some notes and bonds that pay interest semiannually, the semiannual interest due to the… …

    Financial and business terms

  • 7Key Rate — The specific interest rate that determines bank lending rates and the cost of credit for borrowers. The two key interest rates in the United States are the discount rate and the Federal Funds rate. The key rates are one of the chief tools used by …

    Investment dictionary

  • 8key rate — /ki: reɪt/ noun an interest rate which gives the basic rate on which other rates are calculated (e.g. the former bank base rate in the UK, or the Federal Reserve’s discount rate in the USA) …

    Dictionary of banking and finance

  • 9key rate — ➔ rate1 * * * key rate UK US noun [C] ► BANKING, FINANCE the rate of interest at which a central bank lends money to other banks: »Australia s central bank raised its key rate by a quarter percentage point yesterday …

    Financial and business terms

  • 10Official bank rate — The official bank rate (also called the Bank of England base rate[1] or BOEBR) is the interest rate that the Bank of England charges Banks for secured overnight lending. It is the British Government s key interest rate for enacting monetary… …

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  • 11Bank rate — For the company, see Bankrate. Bank rate, also referred to as the discount rate, is the rate of interest which a central bank charges on the loans and advances that it extends to commercial banks and other financial intermediaries. Changes in the …

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  • 12Credit card interest — Finance Financial markets Bond market …

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  • 13London Interbank Offered Rate — The London Interbank Offered Rate (or LIBOR, pronEng|ˈlaɪbɔr) is a daily reference rate based on the interest rates at which banks offer to lend unsecured funds to other banks in the London wholesale money market (or interbank market). LIBOR will …

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  • 14Adjustable-rate mortgage — A variable rate mortgage, adjustable rate mortgage (ARM), or tracker mortgage is a mortgage loan with the interest rate on the note periodically adjusted based on an index which reflects the cost to the lender of borrowing on the credit… …

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  • 15Fixed rate mortgage — A fixed rate mortgage (FRM) is a mortgage loan where the interest rate on the note remains the same through the term of the loan, as opposed to loans where the interest rate may adjust or float. Other forms of mortgage loan include interest only… …

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  • 16Official cash rate — The official cash rate (OCR) is interest rate paid by banks in the overnight money market in Australia and New Zealand. Through the regulated use of exchange settlement accounts, a central bank is able to adjust the interest rates of a nation s… …

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  • 17Security interest — A security interest is a property interest created by agreement or by operation of law over assets to secure the performance of an obligation, usually the payment of a debt.[1] It gives the beneficiary of the security interest certain… …

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  • 18Open interest — (also known as open contracts or open commitments) refers to the total number of derivative contracts, like futures and options, that have not been settled in the immediately previous time period for a specific underlying security. A large open… …

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  • 19Royalty rate assessment — is a practical tool to gauge the impact of a royalty commitment in a technology contract to the business interests of the contracting parties. In this coverage, the terms royalty , royalty rate and royalties are used interchangeably.A firm with… …

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  • 20lending rate — UK US noun [C] BANKING, FINANCE, ECONOMICS ► the rate of interest that a bank or other financial organization charges for borrowing money: »Iceland s central bank raised its key lending rate to 13.5%. cut/raise/increase the lending rate… …

    Financial and business terms