Editing Interest rate (section)

==History==
[[Image:German bank interest rates from 1967 to 2003 grid.svg|thumb|right|Germany experienced deposit interest rates from 14% in 1973 down to almost 2% in 2003.]]
In the past two centuries, interest rates have been variously set either by national governments or central banks. For example, the Federal Reserve [[federal funds rate]] in the United States has varied between about 0.25% and 19% from 1954 to 2008, while the [[Bank of England]] base rate varied between 0.5% and 15% from 1989 to 2009,<ref>moneyextra.com [http://www.moneyextra.com/dictionary/interest-rate-history-003455.php Interest Rate History] {{webarchive|url=https://web.archive.org/web/20081016004207/http://www.moneyextra.com/dictionary/Interest-rate-history-003455.php |date=2008-10-16 }}. Retrieved 2008-10-27</ref><ref>{{cite news |url= http://news.bbc.co.uk/1/hi/business/7925620.stm |title=UK interest rates lowered to 0.5% |work=BBC News |date=5 March 2009}}</ref> and Germany experienced rates close to 90% in the 1920s down to about 2% in the 2000s.<ref>{{Harv|Homer|Sylla|Sylla|1996|loc=p. 509}}</ref><ref>[[Bundesbank]]. [http://www.bundesbank.de/statistik/statistik_zeitreihen.en.php?lang=en&open=&func=row&tr=SU0021 BBK – Statistics – Time series database] {{webarchive|url=https://web.archive.org/web/20090212210639/http://www.bundesbank.de/statistik/statistik_zeitreihen.en.php?lang=en&open=&func=row&tr=SU0021 |date=2009-02-12 }}. Retrieved 2008-10-27</ref> During an attempt to tackle spiraling [[hyperinflation]] in 2007, the Central Bank of [[Zimbabwe]] increased interest rates for borrowing to 800%.<ref>worldeconomies.co.uk [http://www.worldeconomies.co.uk/03102007-382.html Zimbabwe currency revised to help inflation] {{webarchive|url=https://web.archive.org/web/20090211062924/http://www.worldeconomies.co.uk/03102007-382.html |date=2009-02-11 }}</ref>

The [[prime rate|interest rates on prime credits]] in the late 1970s and early 1980s were far higher than had been recorded – higher than previous US peaks since 1800, than British peaks since 1700, or than Dutch peaks since 1600; "since modern capital markets came into existence, there have never been such high long-term rates" as in this period.<ref>{{Harv|Homer|Sylla|Sylla|1996|loc=p. 1}}</ref>

Before modern capital markets, there have been accounts that savings deposits could achieve an annual return of at least 25% and up to as high as 50%.<ref>{{cite book |last1=Ellis |first1=William |last2=Dawes |first2=Richard |title=Lessons on the Phenomena of Industrial Life: And the Conditions of Industrial Success |year=1857 |publisher=Groombridge |pages=iii–iv |url={{GBurl|JXhHAAAAYAAJ|pg=PR3}}}}</ref>