The key rates are one of the chief tools used by the Federal Reserve system to implement monetary policy. When the Fed wants to expand the money supply, it will typically lower one or both key rates in order to decrease the cost of borrowing. When the Fed is in a contractionary phase, it will raise the rates to increase the cost of borrowing.
Investment dictionary. Academic. 2012.
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key rate — ➔ rate1 * * * key rate UK US noun [C] ► BANKING, FINANCE the rate of interest at which a central bank lends money to other banks: »Australia s central bank raised its key rate by a quarter percentage point yesterday … Financial and business terms
key rate — /ki: reɪt/ noun an interest rate which gives the basic rate on which other rates are calculated (e.g. the former bank base rate in the UK, or the Federal Reserve’s discount rate in the USA) … Dictionary of banking and finance
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key rate duration — A measure of duration that calculates effective or empirical duration by changing the market rate for one specific maturity point on the yield curve while holding all other variables constant. May be done as part of a series of calculations that… … Financial and business terms
rate — The cost of debt service paid by a borrower or issuer to a lender or investor. The rate is expressed as an annual percentage of the amount borrowed. For some notes and bonds that pay interest semiannually, the semiannual interest due to the… … Financial and business terms
Key performance indicator — Key Performance Indicators (KPI) are financial and non financial metrics used to help an organization define and measure progress toward organizational goals [ [http://management.about.com/cs/generalmanagement/a/keyperfindic.htm Key Performance… … Wikipedia
key to — ˈkey to [transitive] usually passive [present tense I/you/we/they key to he/she/it keys to present participle keying to past tense keyed to … Useful english dictionary
Key West — is an island in the Straits of Florida on the North American continent at the southernmost tip of the Florida Keys.Key West is politically within the limits of the city of Key West, Monroe County, Florida, United States. The city also occupies… … Wikipedia
Key deer — A male Key Deer on No Name Key in the Florida Keys Conservation status … Wikipedia
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