Interest Rates

Key interest rates of world’s leading economies

Interest rate - is a rate at which the Central bank of the country lends money to the commercial banks. Decision about change in interest rate made by Central Bank or the structure acting as a country’s Central Bank. Increase in value of the interest rate occurs in case of increase in the rate of inflation in the economy (when the economy growing). If the Central Bank increases the interest rate it is a positive factor for the currency of that country. Currency will increase in value, therefore it should be bought. If the Central Bank does not change the interest rate or decrease its value, it means the economic situation getting worse. Accordingly, if Central Bank decreases the value of the interest rate it will have a negative impact on the currency, therefore if will get cheaper and should be sold.