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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Discover More

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

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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

A lot of loans are tied to the prime rate and other benchmarks driven by the Fed’s short-term targets.

From The Wall Street Journal ● Mar. 20, 2026

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

From Los Angeles Times ● Jan. 14, 2026

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 ● Jan. 21, 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 Ronald Reagan

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