- the minimum interest rate charged by a commercial bank on short-term business loans to large, best-rated customers or corporations.
Origin of prime rate
First recorded in 1955–60
Dictionary.com Unabridged Based on the Random House Unabridged Dictionary, © Random House, Inc. 2018
- the lowest commercial interest rate charged by a bank at a particular time
The prime rate is usually the lowest prevailing interest rate; if it rises, rates available to consumers will soon rise.
The New Dictionary of Cultural Literacy, Third Edition Copyright © 2005 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.