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

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

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

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 ● May 19, 2024

The inflationary expectations that led to a 21 1/2-percent interest prime rate and soaring mortgage rates 2 years ago are now reduced by almost half.

From State of the Union Address by Reagan, Ronald