Market interest rates refer to the cost of borrowing money or the return on savings, determined by supply and demand in the financial markets. When demand for loans is high, interest rates tend to rise, making borrowing more expensive. Conversely, when demand is low, rates may decrease, encouraging borrowing and spending. These rates are influenced by various factors, including central banks, inflation, and economic growth. For example, when a central bank raises its benchmark rate, it often leads to higher market interest rates, affecting everything from mortgages to credit cards.