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

As for upcoming economic data releases, investors will be on watch for new foreign direct investment data expected soon as well as the central bank’s announcement on the latest loan prime rate.

From The Wall Street Journal

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

On Tuesday, the People’s Bank of China is set to announce the latest one-year loan prime rate—the rate tied to the bulk of household and business loans—which is widely anticipated to remain unchanged.

From The Wall Street Journal

It has steadily increased since 2022, mostly because of an increase in the prime rate, the benchmark for card issuers.

From Los Angeles Times

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