How The Rate Is Determined and Its Impact On The Economy
The interest rate that is charged by a country’s central or federal bank on loans and advances to control money supply in the economy and the banking sector. This is typically done on a quarterly basis to control inflation and stabilize the country’s exchange rates. A fluctuation in bank rates triggers a ripple-effect as it impacts every sphere of a country’s economy. For instance, the prices in stock markets tend to react to interest rate changes. A change in bank rates affects customers as it influences prime interest rates for personal loans. It is the rate at which central bank provides to the commercial bank for the excess reserves being kept with the central bank.
Read more about this topic: Bank Rate
Famous quotes containing the words rate, determined, impact and/or economy:
“At this very moment,... the most frightful horrors are taking place in every corner of the world. People are being crushed, slashed, disembowelled, mangled; their dead bodies rot and their eyes decay with the rest. Screams of pain and fear go pulsing through the air at the rate of eleven hundred feet per second. After travelling for three seconds they are perfectly inaudible. These are distressing facts; but do we enjoy life any the less because of them? Most certainly we do not.”
—Aldous Huxley (1894–1963)
“The gentlemen [at a ball], as they passed and repassed, looked as if they thought we were quite at their disposal, and only waiting for the honour of their commands; and they sauntered about, in a careless indolent manner, as if with a view to keep us in suspense.... I thought it so provoking, that I determined in my own mind that, far from humouring such airs, I would rather not dance at all.”
—Frances Burney (1752–1840)
“Conquest is the missionary of valour, and the hard impact of military virtues beats meanness out of the world.”
—Walter Bagehot (1826–1877)
“It enhances our sense of the grand security and serenity of nature to observe the still undisturbed economy and content of the fishes of this century, their happiness a regular fruit of the summer.”
—Henry David Thoreau (1817–1862)