RATE HIKE Meaning and
Definition
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Rate hike refers to an increase in the cost or price of a particular service, product, or rate of interest. It is a term primarily used in the financial and economic contexts to describe an upward adjustment or rise in rates that impacts various sectors of the economy.
In the context of interest rates, a rate hike occurs when a central bank or monetary authority decides to raise the benchmark interest rates. This increase is typically implemented to control inflation, encourage saving over borrowing, and stabilize the economy. A rate hike has implications for various aspects of the economy, including the cost of borrowing for businesses and consumers, mortgage rates, credit card interest rates, and investment returns.
Moreover, a rate hike can also refer to an increase in prices charged for services or products by businesses. This can be attributed to factors such as increased production costs, higher demand, or changes in market dynamics. Consumers may experience rate hikes in areas such as insurance premiums, utilities, transportation fares, and other goods and services.
Overall, rate hikes exert a direct impact on the cost of living, economic growth, and investment decisions. They are closely monitored and analyzed by financial institutions, businesses, and individuals as they influence borrowing costs, investment returns, and overall profitability. These adjustments are essential for maintaining balance in the economy and ensuring the efficient allocation of resources.
Common Misspellings for RATE HIKE
- eate hike
- date hike
- fate hike
- tate hike
- 5ate hike
- 4ate hike
- rzte hike
- rste hike
- rwte hike
- rqte hike
- rare hike
- rafe hike
- rage hike
- raye hike
- ra6e hike
- ra5e hike
- ratw hike
- rats hike
- ratd hike
- ratr hike
Etymology of RATE HIKE
The word "rate hike" is a compound noun that combines the words "rate" and "hike".
The word "rate" comes from the Old French "rate" or "rata" and ultimately from the Latin "rata" or "ratus", meaning "fixed portion" or "fixed quantity". Over time, "rate" has evolved to refer to a specific price, charge, value, or proportion, particularly in relation to taxes, fees, or interest.
The word "hike" originated in the late 18th century, derived from the dialectal word "hick" or "hike", meaning "to move or lift with a jerk". It gradually came to signify "to raise or increase abruptly" and is often used in the context of prices, rates, or fees.
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