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Market Interest Rate

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Market interest rate
Rates of interest paid on deposits and other investments, determined by the interaction of the supply of and demand for funds in the money market.

Market Interest Rate
The interest rate offered most commonly on deposits in banks, other interest-bearing accounts, as well as on loans. The market interest rate is different for different investment vehicles, though all are determined by the supply and demand for credit.


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The European Central Bank has so far been reluctant to follow the example of its major counterparts in Japan, the US and Britain, which have programmes to buy corporate bonds aimed at bringing down market interest rates.
The BOJ's quantitative easing policy might have provided ''some buoyant force'' to the economy by stabilizing market interest rates at very low levels, he said.
According to liquidly traded market interest rate instruments, traders previously predicted that the Pound's short term rates would gain by at least 50 basis points through the medium term.
 
 
 
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