Definition, Meaning & Synonyms
prime-rate
noun
/praɪm reɪt/
Definition
The prime rate is the interest rate that commercial banks charge their most creditworthy customers, typically large corporations.
Examples
- The bank announced a change in its prime rate, affecting many loans and credit lines.
- When the economy is strong, the prime rate usually rises.
Meaning
It serves as a benchmark for various loans and interest rates, influencing the rates borrowers receive.
Synonyms
- base rate
- reference rate
- benchmark rate
