prime rate

noun

: 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 Last month, the PBOC cut its five-year loan prime rate by 25 basis points, the largest reduction since 2019. Laura He, CNN, 8 Mar. 2024 China cut the 5-year loan prime rate (LPR), which mortgages are based on, down to 3.95% from 4.20% versus expectations of 4.10%, one of the deepest cuts ever, leading to a rebound in real estate. Brendan Ahern, Forbes, 23 Feb. 2024 The latest move is a cut by major banks to the five-year loan prime rate. Jj Kinahan, Forbes, 21 Feb. 2024 Retirement plans typically charge the current prime rate plus 1 percent to 2 percent interest rate. Roxana Popescu, San Diego Union-Tribune, 4 Jan. 2024 The one-year loan prime rate was left at 3.45% and the five-year rate was the same as last month at 4.2%, according to the People’s Bank of China. Wsj Pro, WSJ, 20 Dec. 2023 The People’s Bank of China trimmed on Monday its one-year loan prime rate (LPR) by 10 basis points from 3.55% to 3.45% and did not change the five-year rate, which stands at 4.20%. Juliana Liu, CNN, 20 Aug. 2023 Yet today, the prime rate is 8%, making the base rate far higher for borrowers. Lucy Brewster, Fortune, 17 Apr. 2023 The People’s Bank of China kept its five-year loan prime rate on hold Monday, while trimming its one-year loan prime rate by one tenth of a percentage point, my colleagues Juliana Liu and Michelle Toh report. Nicole Goodkind, CNN, 21 Aug. 2023

These examples are programmatically compiled from various online sources to illustrate current usage of the word 'prime rate.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.

Word History

First Known Use

1924, in the meaning defined above

Time Traveler
The first known use of prime rate was in 1924

Dictionary Entries Near prime rate

Cite this Entry

“Prime rate.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/prime%20rate. Accessed 28 Mar. 2024.

Legal Definition

prime rate

noun
: 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

Last Updated: - Updated example sentences
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