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Interest Rate

Fundamental Analysisbeginner
Updated 1/15/2024

Definition

Interest rates are the cost of borrowing money, set by central banks. They significantly impact currency values as higher rates typically attract foreign investment, strengthening the currency, while lower rates can weaken it.

Example

When the Fed raises US interest rates, USD often strengthens as investors seek higher yields in US assets.

Tags

#fundamentals#central-banks#rates
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