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Trends & Analysis
News

Crude oil dips amid easing supply concerns

News

Nikkei 225 on track to end the week with losses

News

Crude oil edges lower ahead of OPEC+ decision

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Is NVIDIA’s correction a buying opportunity?

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Silver price may fall further while below this level

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Best Buy’s shares shorted despite Q3 earnings beat

Trends & Analysis
News

Crude oil dips amid easing supply concerns

News

Nikkei 225 on track to end the week with losses

News

Crude oil edges lower ahead of OPEC+ decision

News

Is NVIDIA’s correction a buying opportunity?

News

Silver price may fall further while below this level

News

Best Buy’s shares shorted despite Q3 earnings beat

Bank rate definition

Bank rate, or discount rate, refers to the interest rate charged by a country’s central bank when it lends money to a domestic or commercial bank, often in the form of short-term loans. By managing its bank rate, central banks can affect economic activity. For instance, lowering a bank rate can help to boost an economy by lowering the cost of funds for borrowers, increasing market activity. Conversely, increasing a bank rate can slow down an economy and decrease market activity.

How bank rates affect the financial markets

Bank rates can have an impact on the value of currencies. This is because higher interest rates can attract foreign investment and strengthen a currency, while lower interest rates can reduce foreign investment and weaken a currency.

When a central bank raises a bank rate, borrowing becomes more expensive for commercial banks, which lead to higher interest rates. This can in turn lead to a currency’s value appreciating against other currencies. Conversely, when a central bank lowers a bank rate, it can lead to a currency’s value depreciating against other currencies.

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