A monetary policy rule that postulates how a central bank determines interest rates based on deviations in inflation and output gap from their target values.
The concept of Minimum Lending Rate (MLR) as used in UK financial policy between 1971 and 1981, and its subsequent replacement by the base rate.
The Purchase or Sale of Securities by the Central Bank to Influence Interest Rates and Money Supply
The tendency in countries with a history of high inflation for interest rates to remain higher than abroad
A currency trading strategy aimed at profiting from the interest rate differential between two currencies.
A form of financial futures where the pay-off from the contract is determined by an interest rate.
A comprehensive guide to understanding the Annualized Percentage Rate (APR) of interest, its calculations, importance, and applications in economics.
A comprehensive entry detailing the definition, history, and implications of the Bank Rate.
Measurement unit for changes or differences in interest rates, equal to 1 per cent of 1 percentage point.
The maintenance of low interest rates intended to encourage investment, particularly during recessions.
An economic concept that ensures the equality of returns on investments in different currencies when adjusted for forward exchange rates, preventing arbitrage opportunities.
A loan made for one business day, the shortest term loan that earns interest. Also known as overnight money.
Explanation of the economic term 'dear money,' involving high interest rates and their impacts on borrowing.
Economics term referring to a progressive reduction in the price level.
An examination of factor prices in economics, which include wages, rent, and interest rates, corresponding to the services provided by labor, land, and capital respectively.
The process of converting government debt from short-term to long-term forms in economic contexts.
An examination of how financial institutions exchange different flows of interest payments.
A situation in which real interest rates cannot be reduced by any action of the monetary authorities.
LIBOR: The benchmark rate meaning and implications
A thorough examination of long-dated security, its definitions, implications, and importance in economics.
The rate of interest paid on government securities with a period to maturity of ten years or above.
A deep-dive into the field of monetary economics, exploring its conduct, institutions, and impact on various economic variables.
A committee established within the Bank of England to advise on monetary policy and interest rates, consisting of a mix of internal and external members.
A reference interest rate used by banks to determine the lending rates for their most creditworthy borrowers.
Understanding the reverse yield gap, where government bond returns exceed those on equities during certain economic conditions.
The Sterling Overnight Index Average (SONIA) tracks sterling overnight funding rates and serves as a proxy for market interest rate expectations.
The relation between the rate of interest paid by a financial security and the time until maturity of the security.
A term used in banking referring to a deposit where withdrawal requires notice or incurs an interest penalty.
A relationship between domestic and foreign interest rates under the assumption that the forward currency market is not used to hedge exchange rate risk.
Understanding the graph representing yields on fixed-interest securities across various maturities.
