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The Deposit Interest Rate is the rate of interest paid by the central bank to commercial banks for the liquidity they deposit within the central bank's facilities. It is a fundamental tool of monetary policy, directly influencing the interest rates that commercial banks offer to their customers. Central banks use this rate to manage liquidity levels in the banking system and steer inflation toward target levels.
Set by the central bank's governing council or monetary policy committee during scheduled policy meetings based on economic conditions and inflation targets.
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