What exactly are interest rates and how does it impact the forex market

I get really confused. I hear all the time about interest rate cuts and how this will affect mortgage and affect currencies etc.

But what exactly is interest rate? and interest rate differential? and how do these affect the market.

Simple it's the cost of borrowing money.
Now you can imagine how this effects the economy and the peoples
behaviors.

One should have a common knowlegde about finacial markets before trading forex.