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 The move in the loan prime rate -- a market indicator of the price that lenders charge corporates and households for loans -- was limited by the lack of a policy interest-rate cuts since February. Bloomberg.com, "China Banks Unexpectedly Keep Benchmark Loan Rate Unchanged," 29 Apr. 2020 The prime rate was recently 3.25%, down from 5.5% a year earlier. Dallas News, "Motley Fool: Playing defense in a pandemic and this week’s trivia," 19 Apr. 2020 Credit cards Credit card rates are typically tied to the prime rate, which is affected by the Fed's benchmark rate. Jessica Menton, USA TODAY, "Here's how the Fed's surprise interest-rate cut affects mortgages, credit cards and home equity lines," 4 Mar. 2020 There are, to name the main contenders, the one-year deposit rate (now 1.5%), the seven-day reverse-repurchase rate (known as the DR007, 2.2%), the medium-term lending facility (MLF, 3.15%) and the one-year loan prime rate (LPR, 4.05%). The Economist, "Free exchange What China’s interest-rate muddle says about its financial system," 2 Apr. 2020 The central bank cut the prime rate for loans by five basis points to 4.2%. Fortune, "Time is Running Out for a U.S.-China Trade Deal," 21 Sep. 2019 The Bank of Thailand cut the prime rate to a record low 1% from 1.25% on Wednesday to help the economy weather a series of setbacks. Washington Post, "Asian economies cut rates, move to blunt impact of virus," 6 Feb. 2020 The problem stemmed from the fact that the prime rate started going up in late 2015 and had actually increased by 2 full percentage points as of this past summer. cleveland, "Variable-rate equity loan requires monitoring to avoid fees: Money Matters," 27 Oct. 2019 As anticipated, China’s central bank reduced its 1-year loan prime rate to 4.2% from 4.25%, slightly easing monetary conditions. San Diego Union-Tribune, "Asian shares mostly higher as China cuts loan rate," 19 Sep. 2019

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.

See More

First Known Use of prime rate

1924, in the meaning defined above

Keep scrolling for more

Learn More about prime rate

Time Traveler for prime rate

Time Traveler

The first known use of prime rate was in 1924

See more words from the same year

Statistics for prime rate

Cite this Entry

“Prime rate.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/prime%20rate. Accessed 26 Feb. 2021.

Style: MLA
MLA Chicago APA Merriam-Webster

Keep scrolling for more

More Definitions for prime rate

prime rate

noun

English Language Learners Definition of prime rate

: the lowest interest rate that banks will give to people who borrow money from them

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

Comments on prime rate

What made you want to look up prime rate? Please tell us where you read or heard it (including the quote, if possible).

WORD OF THE DAY

Test Your Vocabulary

February 2021 Words of the Day Quiz

  • squirrel in winter
  • Which is a synonym of perdure?
True or False

Test your knowledge - and maybe learn something along the way.

TAKE THE QUIZ
Typeshift

Anagram puzzles meet word search.

TAKE THE QUIZ
Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!