What are national interest rates?

National interest rates, also known as benchmark interest rates, are the interest rates that a country’s central bank sets for its financial institutions. These rates serve as a benchmark for determining the cost of borrowing and the yield on investments in the country’s economy. National interest rates can have a significant impact on the overall economic health of a country, as they affect everything from consumer spending to business investment. In general, higher interest rates can make borrowing more expensive, which can slow down economic growth, while lower interest rates can make borrowing cheaper, which can stimulate economic activity.