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» Personal Loan No Credit Check, Online Economics » Topics begins with I » Interest passage


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The so-called passage for the interest development at the money market in an educated manner by the interest rate for the over night credit of the central bank as upper limit as well as by the interest rate for the of the central bank as lower bound. These two interest rates limit the development of the interest at the money market:

  • Upper limit: If the interest rate at the money market would rise over the upper limit of the passage, then each bank would procure itself more cheaply the money over the central bank than at the market (e.g. of other banks) to lend.
  • There cannot be lower money market rates also, since the banks would refinance themselves otherwise with their central bank.

See also

  • European central bank

Related links

  • German Federal Bank (in the statistics part interest rates for the as well as the are indicated)

Articles in category "Interest passage"

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