prime rate

noun

Definition of prime rate

: an interest rate formally announced by a bank to be the lowest available at a particular time to its most credit-worthy customers

called also prime interest rate

Examples of prime rate in a Sentence

Recent Examples on the Web For several decades now, the rule of thumb has been that the prime rate is equivalent to the federal funds rate plus 3%. Rob Wile, NBC News, 16 June 2022 Credit with adjustable rates may also see an impact, including home equity lines of credit and adjustable-rate mortgages, which are based on the prime rate. Aimee Picchi, CBS News, 16 June 2022 That’s because those rates are based in part on banks’ prime rate, which moves in tandem with the Fed. Christopher Rugaber, Chicago Tribune, 16 June 2022 Credit card rates also will rise because they are tied to the prime rate charged by banks to their best customers, a rate that is itself linked to the federal funds rate. Laurence Darmiento, Los Angeles Times, 15 June 2022 The People’s Bank of China cut its five-year loan prime rate — a key interest rate — by 15 basis points to 4.45%, the second reduction this year and the largest on record. Julia Horowitz, CNN, 20 May 2022 The prime rate is given to bank’s most trustworthy lenders. Sean Mcdonnell, cleveland, 5 May 2022 The rates on their cards would rise as the prime rate does. Christopher Rugaber, Chicago Tribune, 4 May 2022 Other types of credit with adjustable rates are also likely to see an impact, such as home equity lines of credit and adjustable-rate mortgages, which are also based on the prime rate. Aimee Picchi, CBS News, 16 Mar. 2022 See More

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'prime rate.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

First Known Use of prime rate

1924, in the meaning defined above

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Time Traveler for prime rate

Time Traveler

The first known use of prime rate was in 1924

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Dictionary Entries Near prime rate

primer

prime rate

primero

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Statistics for prime rate

Last Updated

21 Jun 2022

Cite this Entry

“Prime rate.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/prime%20rate. Accessed 30 Jun. 2022.

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More Definitions for prime rate

prime rate

noun

Legal Definition of prime rate

: an interest rate formally announced by a bank to be the lowest available at a particular time to its most creditworthy customers

called also prime, prime interest rate

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