interest rate policy

Central bank lever

Interest rate policy is a government or central bank's approach to setting borrowing costs in an economy.

Central banks like the Federal Reserve adjust benchmark rates to influence inflation, employment, and economic growth.

The Fed's interest rate policy aims to cool inflation without triggering recession.

Loose policy means lower rates to stimulate borrowing; tight policy means higher rates to restrain it.

Related

asset bubbles · dovish · easy money · central bank · hawkish · tight money · Fed · economic stimulus · soft landing

Opposites
policy instrument type

interest rate policyfiscal policy

State spending and taxation

government spending · taxation policy · tax policy · budgetary policy · fiscal stimulus

policy stance

interest rate policylaissez-faire

Noninterference in commerce

floating rates

policy direction

interest rate policyrate cuts

Lowered borrowing costs

rate hikes · quantitative easing

Family

interest, rate, policy, interests, interested, interesting, interestingly, disinterest, disinterested

Familiarity
Top 500,000
Profile
Used worldwide · Timeless · Abstract · Rated G