Interest Rate Regulation

Interest rate regulation refers to government policies and laws that control the rates that lenders can charge borrowers for loans. This is intended to protect consumers from excessively high rates, ensuring fair lending practices, and promoting economic stability. Central banks, like the Federal Reserve in the U.S., often set benchmark rates that influence overall lending costs. Regulation can also limit how much interest can accrue on certain types of loans, helping to prevent predatory lending and excessive debt burdens for borrowers.