expression

rate hike

an increase in interest rates

In more detail

an increase in interest rates by a central bank or financial institution, making borrowing more expensive and saving more rewarding

Examples

The Federal Reserve announced a rate hike to combat inflation.

How to use rate hike

A rate hike is used in formal financial and economic contexts to describe when central banks or lenders raise interest rates, typically to combat inflation or manage monetary policy. The term is neutral and technical, appearing frequently in news, policy documents, and financial analysis. It focuses on the action itself rather than its consequences, unlike 'tightening' which emphasizes the restrictive effect.

Common phrases

announce a rate hike
implement a rate hike
aggressive rate hike
successive rate hikes
rate hike cycle
Federal Reserve rate hike

Synonyms

interest rate increase · rate increase · rate rise · monetary tightening

Opposites

rate cut · rate reduction · rate decrease

A common mistake

Learners sometimes confuse rate hikes with price increases in general; a rate hike specifically concerns interest rates set by financial institutions, not consumer prices.

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