Intressimääraks

Intressimääraks refers to the interest rate, a fundamental concept in finance and economics. It represents the cost of borrowing money or the return on lending money, expressed as a percentage of the principal amount over a specific period. In essence, it's the price of credit.

When individuals or businesses borrow money, they pay an interest rate to the lender. Conversely, when they deposit money in savings accounts or invest in certain financial instruments, they earn interest at a given rate. The interest rate can be fixed, meaning it stays the same for the entire loan or investment period, or variable, meaning it can fluctuate based on market conditions.

Central banks, such as the European Central Bank, play a significant role in setting benchmark interest rates, which influence the rates offered by commercial banks for loans and savings. These rates are a key tool for monetary policy, used to manage inflation, stimulate economic growth, or curb excessive borrowing. Factors like inflation, economic stability, government policy, and the demand for credit all contribute to determining the prevailing interest rates in an economy. Understanding intressimääraks is crucial for making informed financial decisions regarding borrowing, saving, and investing.