What is policy rate?Policy Rate
The benchmark rate set by a central bank, which drives borrowing costs across the economy.
Learn “policy rate” in an animated lesson
- Bonds & Fixed IncomeThe Yield Curve
Connect the yields of Treasuries at different maturities into a line: normal and upward-sloping, flat, or inverted? It's often seen as a barometer for the economy.
- Fundamental AnalysisHow Macro Data Moves Prices
The moment inflation, jobs or interest rate decisions are released, stocks, bonds and currencies often swing hard together. What matters isn't whether the data is good or bad, but how far it is from expectations.
- Interest Rates & SwapsInterest Rates and Compounding
An interest rate is the "price of money". Compounding makes time your most powerful force, and central banks influence everything through the policy rate.
- Interest Rates & SwapsInflation and Real Interest Rates
Your savings earn 2% and prices rise 4%: do you have more money or less? Tell nominal from real interest rates to see what a rate truly means.
Related terms
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Go to “The Yield Curve”