What Does Bank Rate Imply?
Bank lends load for which it charges at some rate,interest is earned on fixed deposit at some rate,but what is bank rate and how does it relate to these interests on loan,fixed deposits,etc?
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I am not sure what you are asking, but I am assuming it is the bank's interest rate. This is the interest rate that the bank needs to charge, which is over and above it's cost of funds, to make an acceptable return on the money it lends.
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The "bank rate" is the rate the Federal Reserve Bank charges banks who barrow money. Banks attempt to maintain a "spread" between their lending rates and deposit rates. For example, if a bank borrows money from the Fed at 5%, they may loan it out to their customers for 6% thus achieving a 1% "spread" between what they borrow at and what they lend at.
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