Interest rate

An interest rate is the price a borrower pays for the use of money they borrow, for instance a small company might borrow capital from a bank to buy new assets for their business, and the return a lender receives for deferring the use of funds, by lending it to the borrower. Interest rates are normally expressed as a percentage rate over the period of one year.

Interest rates targets are also a vital tool of monetary policy and are taken into account when dealing with variables like investment, inflation, and unemployment.

Main interest rate in USA.

Federal fund rate is a rate under which banks allocate cleared funds, sited on US Federal Reserve System accounts, to the other banks for overnight.

Eurozone interest rate.

Refinancing tender rate is an interest rate, which irreducible for financial borrowings applications in European Central Bank tender.

Interest rate in Japan.

Target interest rate for overnight loans - is such a rate which Bank of Japan wants to see as an average at transaction account market.

Interest rate in Great Britain

Repo rate is a rate under which the Bank of England accommodates with a loan upon stock security.

Main interest in Canada.

Overnight rate target is such an interest level, which Bank of Canada wants to see as an average at transaction account market. For interest rates control Bank of Canada sets the so called - operating spectrum in 0.50 %, the middle of which is always overnight rate target.

Australia:

Cash rate - is a rate which is determined as a result of supply and demand at the money market. Reserve Bank of Australia sets the necessary level of this rate and supports it by controlling the money market.