What is bank rate?

Question

Please, can someone explain bank rate in economics?

Answer 1

Bank rate is a percent that central bank will ask to return in addition to the money it lends to commercial banks. According to bank rate you can predict commerical banks credit or deposit rate.

Comments

Thank you Artem Terekhov. Economics in school is always a pain in my leg.

Answer 2

The bank rate, also known as the discount rate, is the interest rate at which a central bank (such as the Federal Reserve in the United States) lends money to other banks or financial institutions. This rate can serve as a benchmark for other interest rates in the economy, and changes in the bank rate can indicate the central bank's monetary policy stance and can have an impact on the overall level of interest rates.

Answer 3

Bank rate is the interest rate that is set by a central bank (such as the Federal Reserve in the United States) and that is used to influence or control the economy. It is the rate at which a central bank lends money to commercial banks or other financial institutions. A central bank can increase or decrease the bank rate to stimulate the economy by reducing interest rates, thus making it cheaper to borrow money, or by increasing interest rates, thus making it more expensive to borrow money. A higher bank rate usually has a contractionary effect on the economy, as it increases the cost of borrowing and reduces the amount of money available for investment and consumption.

Answer 4

The bank rate is the rate of interest which is charged by central bank while lending loans to commercial bank .in the event of fund definiciency ,so the bank borrows money from the central bank of the country.

Answer 5

Bank rates are rates that are charged by the central bank on loans and credits they give to commercial banks without any collateral .

Answer 6

Interest rate a national central bank charges to its domestic banks to borrow money . The rate central bank charges are set to stabilize the economy. 

Answer 7

Bank rate, also known as the discount rate, is the rate at which a central bank lends money to commercial banks and other financial institutions. It is an important tool used by central banks to influence the money supply and interest rates in the economy. Changes in the bank rate can have a significant impact on economic activity, as it affects the cost of borrowing for businesses and households.