Definition
An interest rate expresses the price of borrowing or return on lending over time as a proportion of principal under stated calculation terms.
In market context
Rates can be fixed or variable and can refer to policy, deposit, lending, bond, or market instruments with different maturities and risks. Changes influence saving returns, financing costs, currency values, company cash flows, and the discounting of future payments, but the effect on any asset depends on expectations and cause. Compounding, day count, fees, and credit risk determine the amount actually earned or paid.
Source
Use the primary source for fuller regulatory or market context.
