prime rate

American

noun

Banking.

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

prime rate British

noun

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

"Collins English Dictionary — Complete & Unabridged" 2012 Digital Edition © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012

prime rate Cultural

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

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

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 • Feb. 13, 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

The 1-year loan prime rate is at 3.45% and the five-year LPR is at 4.2%.

From Seattle Times • Sep. 19, 2023

Economists had also expected the bank to lower its five-year loan prime rate, which the country's mortgages are pegged to.

From BBC • Aug. 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 Reagan, Ronald

Definitions and idiom definitions from Dictionary.com Unabridged, based on the Random House Unabridged Dictionary, © Random House, Inc. 2023