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Fed Rate
The overnight lending rate between banks as set by the United
States' Federal Reserve Bank.
The overnight lending rate influences the interest charged
by banks to lend to one another and is used by the Federal
Reserve to regulate inflation during economic growth (by
raising the rate) and encourage investment during recession
(by lowering the rate).
Example:
Under this Decision, from August 19, overnight lending rate between banks is to be adjusted to 0.04%/day or 15%/year from 0.03%/day or 10.8%/year. Rate governed Decision 1429/2002/QĐ-NHNN dated December 16, 2002 has been expired.
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