Reading newspaper, article says FED did adjust key interest rate.looked for definition, but

Question

I can't find it. What is the "key rate"? or were they just alking about prime rate, fed funds rate, etc. as a group? Thanks all.

Answer 1

What ever rates the FED adjusts, influences interest rates the federal governments pays and the interest rates banking and other financial institutes can can borrow money at. It does not affect the average consumer who already is in debt. It may affect NEW loans and those interested in re-financing.  

Answer 2

You have two rates. In UK we have Bank rate, set by BoE and LIBOR which is set by the banks. It is basically the rate (inter-bank) at which banks will lend to each other and therefore is more importanat than the headline bank rate.