An interest rate is the price of borrowing, given as a percentage. A fixed interest rate, the interest rate rose, a low interest rate.
The central bank sets one rate and every other follows it at a distance. A small change moves a mortgage payment more than people expect, because it applies to the whole outstanding sum.
1nouninterest rateThe price of borrowing, as a percentage.
“A quarter point on the interest rate added forty pounds a month.”
interest rate is a rate.
Practised in Business & Money