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Forward Interest Rate

    0.01 sec.
Forward interest rate
Interest rate fixed today on a loan to be made at some future date.

Forward Interest Rate
An interest rate to which a borrower and lender agree for a loan to be made in the future. According to the unbiased expectations hypothesis, forward interest rates predict spot interest rates at the time the loan is actually made, but many analysts dispute whether this is true.


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To choose between these hypotheses, we examine how monetary policy surprises affect daily traded commodity prices, term interest rates, and forward interest rates.
The failure of this package significantly enhances the chances of bringing forward interest rate cuts.
 
 
 
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