Glossary › rate hike
Trading glossary · fundamentals
rate hike
When a country's main bank raises the cost of borrowing money, usually to slow down rising prices.
The fuller meaning
An increase in the central bank's policy rate to fight inflation. Borrowing gets more expensive, which usually cools the economy; higher rates tend to support the currency and weigh on bond prices and growth stocks, though the surprise matters more than the decision itself.
rate hike.
Related words
adoption · analyst estimate · balance sheet · Bank of Japan · beat · bond · book value · business cycle · cash flow · central bank