A short-term interest rate quoted by a commercial bank as an indication of the rate being charged on loans to its best commercial customers. Even though banks frequently charge more and sometimes less than the quoted prime rate, it is a benchmark against which other rates are measured and often keyed. For various reasons, a rising prime rate is generally considered detrimental to security prices. Also called prime.
Main Entry: prime interest rate Function: noun :PRIME RATE
Main Entry: prime rate Function: 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 primeprime interest rate
