prime rate

noun

, Banking.

1. the minimum interest rate charged by a commercial bank on short-term business loans to large, best-rated customers or corporations.

prime rate

noun

1. the lowest commercial interest rate charged by a bank at a particular time

prime rate

1. The interest rate that banks charge to corporations that are considered excellent risks.

Notes

The prime rate is usually the lowest prevailing interest rate; if it rises, rates available to consumers will soon rise.

Word History and Origins

Origin of prime rate¹

First recorded in 1955–60

Example Sentences

On Monday, China’s central bank left the one- and five-year loan prime rate unchanged at 3.45% and 3.95%, in line with expectations.

From Seattle Times

China’s central bank kept its 1-year loan prime rate unchanged on Tuesday but cut its 5-year rate by 25 basis points to 3.95%.

From Seattle Times

Shanghai had retreated on selling by investors disappointed by China’s decision to keep the loan prime rate unchanged despite concern over the outlook for the economy, which is forecast to slow further after a post-pandemic recovery faded more quickly than expected.

From Seattle Times

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

China announced on Friday it was keeping its benchmark lending rates unchanged, with the one-year loan prime rate unchanged at 3.45% and the five-year LPR at 4.20%, in line with market expectations.

From Seattle Times