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Trends & Analysis
News

Week Ahead Preview: 17th of March

News

Adobe posts Q1 beat, stock tanks on AI concerns

News

Why did U.S. Stock Indices prices decline, and will they rise again?

News

Crude climbs amid swings in supply-demand dynamics

News

EUR/USD Outlook: price may continue to rise while above this level

News

Bitcoin breaches $83K after Ukraine ceasefire deal

Trends & Analysis
News

Week Ahead Preview: 17th of March

News

Adobe posts Q1 beat, stock tanks on AI concerns

News

Why did U.S. Stock Indices prices decline, and will they rise again?

News

Crude climbs amid swings in supply-demand dynamics

News

EUR/USD Outlook: price may continue to rise while above this level

News

Bitcoin breaches $83K after Ukraine ceasefire deal

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.

Start trading with ADSS

ADSS offers a range of global markets for traders, with CFD opportunities in indices, commodities, forex, equities and more. We also feature tutorials, how-to guides, and weekly webinars to help you navigate the financial markets and find better trading opportunities. You can start trading and investing online by opening a live trading or demo trading account.

 

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ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.