Real interest rates are dictated by the rate of inflation. Higher inflation rates erode consumers’ purchasing power and the amount of interest earned from investments such as deposits.

An interest rate can be thought of as the cost of borrowing money, or the income you earn on saved money. A simple definition of “interest rate” is the cost of borrowing money. When interest ...

Interest rate risk in the banking book is the risk posed by adverse movements in interest rates that cause a mismatch between the rates banks set on customer loans and on deposits. For example, if ...

Last month, Fed officials signaled they expect just two rate cuts for all of 2025, a shallower path of reductions than previously anticipated. Investors echo this view, betting on one cut by the Fed’s ...