Concepts

A unit for changes in a percentage rate. One basis point is 0.01 percentage points.

Interest earns further interest when it stays invested. Growth depends on the rate, timing and compounding frequency.

A measure of average price changes for a basket of consumer goods and services. It is commonly used to track inflation.

The price of one currency in terms of another. Always check which currency is being priced.

A sustained increase in the overall level of prices. The same amount of money buys less than before.

The price of borrowing money, usually expressed as a percentage per year. It is also a payment a saver may receive.

Central-bank actions intended to make financial conditions more restrictive, often to reduce inflation pressure.

Supply describes the amount sellers are willing to offer; demand describes the amount buyers are willing to purchase at different prices.