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

Rate hikes can influence the stock market as they increase the cost of borrowing for companies. An investment analyst might note, 'Rate hikes often lead to short-term volatility in the stock market, as investors adjust their expectations for future corporate earnings.'

Practice Scenarios

Business

Scenario:

Given the current inflation situation, we might need to adjust our interest rates.

Response:

I suppose we have no choice but to announce a rate hike on our interest rates to maintain profitability.

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.