prime rate

American  

noun

Banking.

1. the minimum interest rate charged by a commercial bank on short-term business loans to large, best-rated customers or corporations.

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prime rate British  

noun

1. the lowest commercial interest rate charged by a bank at a particular time

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prime rate Cultural  

1. The interest rate that banks charge to corporations that are considered excellent risks.

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The prime rate is usually the lowest prevailing interest rate; if it rises, rates available to consumers will soon rise.

Etymology

Origin of prime rate

First recorded in 1955–60

Example Sentences

See Examples For:

prime rate

In Asia, investors will focus on central bank commentary and price data, particularly through the Bank of Japan’s summary of opinions and China’s loan prime rate announcement.

From The Wall Street Journal ● Jun. 19, 2026

The Bank of Japan’s prime rate remains at 0.75%, depressing bond yields that might suck more capital in.

From Barron's ● May 14, 2026

Possibly the most telling statistic tracks the difference between borrowing benchmarks, such as the prime rate, and what you pay on your credit card.

From Los Angeles Times ● Jan. 26, 2026

China announced on Friday it was keeping its benchmark lending rates unchanged, with the one-year loan prime rate unchanged at 3.45% and the five-year LPR at 4.20%, in line with market expectations.

From Seattle Times ● Oct. 20, 2023

The prime rate has been cut almost in half, and we must work together to bring it down even more.

From State of the Union Address by Ronald Reagan