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

While Fed rate cuts can mechanically lower what some customers pay to borrow, such as via the prime rate that is often the base for credit-card rates, they usually don’t automatically flow through to cheaper deposit costs for banks.

From The Wall Street Journal

On Monday, China’s central bank left the one- and five-year loan prime rate unchanged at 3.45% and 3.95%, in line with expectations.

From Seattle Times

China’s central bank kept its 1-year loan prime rate unchanged on Tuesday but cut its 5-year rate by 25 basis points to 3.95%.

From Seattle Times

Shanghai had retreated on selling by investors disappointed by China’s decision to keep the loan prime rate unchanged despite concern over the outlook for the economy, which is forecast to slow further after a post-pandemic recovery faded more quickly than expected.

From Seattle Times

China’s commercial banks kept their loan prime rate unchanged Monday amid downward pressure on the yuan, disappointing investors who anticipated measures to stimulate the economy.

From Seattle Times