What is meant by interest rate?

It is the rate paid by the central bank on commercial bank deposits

What is meant by raising interest?

Raising interest means curbing borrowing operations and thus reducing the liquidity ratio in the market, which leads to lowering the inflation rate

Example: The US Federal Reserve decided to withdraw liquidity from the market by attracting citizens to deposit their money in banks with the aim of obtaining a high interest rate, and then the inflation rate that rose as a result of the increased purchasing activity would decrease amid the decline in supply.

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