rate-hike

Vocabulary Word

Definition

'Rate hike' means a cost has gone up. It's often used to talk about interest rates on things like loans or credit cards, but it can also mean the price of goods or services.

Examples in Different Contexts

In personal finance, a rate hike can affect loan and mortgage interest rates, impacting monthly payments. A financial advisor might explain, 'With the recent rate hike, you might see an increase in your mortgage payments, so it's essential to review your budget.'

Practice Scenarios

Tech

Scenario:

We need to think about our response to rising operational costs. Do we have other options?

Response:

Perhaps implementing a rate hike on our packages is necessary to offset the operational cost.

Public-Policy

Scenario:

The budget shortfall this year is worrying. Let's discuss possible avenues for increasing state revenue.

Response:

A moderate rate hike in property tax could be an acceptable solution to increase state revenue.