What are short term interest rates?

Short term interest rates refer to the interest rates on financial instruments that mature within one year or less. These rates are typically set by central banks, and are used to control the money supply and stabilize the economy. Short term interest rates have a direct impact on the cost of borrowing, making them an important factor for businesses and individuals looking to borrow money. Examples of financial instruments that are affected by short term interest rates include Treasury bills, commercial paper, and certificates of deposit.

The effects of interest rates are often not directly felt but play out over a long time as valuations of real-estate and other assets adjust.

At Horizon65, we created a mobile app that enabled you to check the effect of high interest rates on your savings and to simulate potential investments that can defend against it.

Similar Questions

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 f...

How to calculate interest rate on credit card?

To calculate the interest rate on a credit card, you will need to gather some information about your card’s terms and your c...

How to calculate interest rate risk?

To calculate interest rate risk, you need to consider two key factors: the duration of the investment and the sensitivity of the i...

Ready to get started?

Download our app and start gaining insight into your current and future finances.