What Is An Interest Rate?
An interest rate is the percentage of the principal loan that borrows pay to lenders for borrowing assets.
An interest rate is basically the cost for leasing cash, goods or assets like automobiles. Depending on the risk associated with the borrower, the interest rate could be low or high. Interest rates are often use to control economic activities, such as inflation and unemployment. Central banks lower the interest rate level when investment and consumption is desired, and raise to avoid economic bubbles. In the forex market, some traders use a strategy that involves selling currencies with low interest rates and buy currencies with high interest rates.
Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, Friedberg Direct takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of Friedberg Direct commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the Friedberg Direct's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed .