The policy by which governments or central banks influence interest rates. Higher rates of interest will reduce the demand for money, giving a downward impetus to output, employment and prices. Lower interest rates will have the opposite effect. Responsibility for interest-rate policy was restored to the Bank of England by the UK government in 1997.

• locked in
• lock-up
• loco
• Lombard rate
• Lombard Street
• Lomé Convention
• London acceptance credit
• London and New Zealand Futures Association
• London approach
• London Bankers' Clearing House
• London Bullion Market
• London Chamber of Commerce and Industry
• London Clearing House
• London Club
• London Cocoa Terminal Market
• London code of conduct
• London Commodity Exchange
• London daily prices
• London Fox
• London Inter Bank Bid Rate
• London Inter Bank Currency Options Market
• London Inter Bank Mean Rate
• London Inter Bank Offered Rate
• London International Financial Futures and Options Exchange
• London International Insurance and Reinsurance Market Association