This is known as the discount rate or the base rate.
In the realm of finance, the discount rate or base rate refers to the interest rate at which a central bank offers loans to its domestic banking system. This is an important factor in monetary policy and can have significant impacts on the economy. By understanding the discount rate, we can gain insight into the decisions made by central banks and how they influence financial markets. As future financial professionals, it is crucial to have a strong grasp on this concept.
