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Long-Term Interest Rate
(redirected from long-term interest rates)

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Long-Term Interest Rate
An interest rate on a financial instrument with a maturity of longer than one year. A long-term interest rate is usually (but not always) higher than a short-term rate because of the added risk of committing capital to a person or project for such a long period of time.


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Since the bond market is the key link in the transmission of the monetary policy, the effect of changes in the target rate on long-term interest rates has been the focus of a long strand of literatures.
Speaking at a London conference on global imbalances, she pointed out that Britain's long-term interest rates are lower than they have been for generations.
Misperception #2: High house price growth implies a bubble When the real cost of long-term borrowing is low, as it is today, the study shows that changes in long-term interest rates have a disproportionately large effect on house prices.
 
 
 
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