Interest Rates

Interest rates refer to the percentage charged by a lender for borrowing money, or the return earned on an investment. Typically, interest rates are expressed as an annual percentage rate (APR) and can vary depending on a variety of factors, including the borrower's creditworthiness, the length of the loan or investment, and the current economic climate. Higher interest rates tend to make borrowing more expensive and saving more attractive, while lower interest rates can encourage borrowing and spending. Central banks and other financial institutions use interest rates as a tool to manage inflation, economic growth, and monetary policy.