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Interest rates

UK //ˈɪntə.rest reɪts//US //ˈɪntər.ɛst reɪts//

Definition

The percentage charged on borrowed money or earned on savings.

In simple words: The cost of borrowing money expressed as a percentage.

Examples

  • Interest rates have increased, affecting many borrowers.
  • The central bank decided to lower interest rates to stimulate the economy.
  • Some people prefer fixed interest rates for stability over time.
  • High interest rates make it harder for individuals to buy homes.
  • Many investors watch interest rates closely for signs of economic change.

Usage notes

Used in financial contexts, often when discussing loans or economic policy. Avoid using colloquial language when discussing serious financial matters.

Grammar pattern

plural noun

Memory hint

Think of 'interest rates' as 'interest in rates' for borrowing.

Collocations

  • raise interest rates
  • lower interest rates
  • current interest rates

Synonyms

  • borrowing costs
  • lending rates
  • financial charges

Common mistakes

  • Confusing 'interest rates' with 'inflation rates'.
  • Using 'interest rate' instead of the correct plural 'interest rates'.