baasintressimäär

Baasintressimäär, a Finnish term, translates to "base interest rate" in English. It refers to the foundational interest rate set by a central bank, such as the European Central Bank (ECB) or the Bank of Finland, which influences lending and borrowing costs throughout the economy. This rate is a key tool of monetary policy, used to manage inflation and stimulate or curb economic activity.

Changes in the baasintressimäär can have ripple effects. A lower base rate generally makes borrowing cheaper for consumers and businesses, potentially encouraging spending and investment. Conversely, a higher base rate makes borrowing more expensive, which can help to cool down an overheating economy and control inflation. The baasintressimäär is not the only interest rate; commercial banks set their own lending and deposit rates, which are often benchmarked against the central bank's base rate but also incorporate other factors like credit risk and market conditions. Therefore, while the baasintressimäär is a crucial reference point, the actual interest rates individuals and companies face may vary.