Introduction to Floating Rates
Peter Eisenhardt
30 years: Capital markets & investment banking
Peter explains what floating rates are and explains why the most important floating rates are in fact central bank policy rates.
Peter explains what floating rates are and explains why the most important floating rates are in fact central bank policy rates.
Introduction to Floating Rates
10 mins 23 secs
Floating rates are interest rates that move up or down over time based on interest-rate benchmarks agreed between market counterparties or banks and their customers. Central banks use floating policy rates to conduct monetary policy and determine the flow of money into the economy.
Key learning objectives:
Understand how floating rates are used
Learn why floating rates are useful
Learn why floating policy rates are important to central banks
Peter Eisenhardt
16:07
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