Benchmark interest rate

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Benchmark interest rate

Also called base interest rate, it is the minimum interest rate investors will demand for investing in a non-Treasury security. It is also tied to the yield to maturity offered on the comparable-maturity treasury security that was most recently issued (on-the-run).

Benchmark Interest Rate

An interest rate against which other interest rates are calculated. For example, LIBOR is considered a benchmark rate because floating-rate instruments are related to it (for example, one may be calculated as LIBOR + 1%). Central banks make loans to banks under their jurisdiction at certain interest rates, which are then used as benchmarks for the loans those banks make.
References in periodicals archive ?
The ten-year, non-call five subordinated bonds with a fixed rate will pay 275 basis points over the local benchmark rate for the first five years, after which the rate will be reset to the prevailing local benchmark rate at that time.
The HKMA already announced in December that it was probing UBS AG (NYSE:UBS) for possible misconduct with the benchmark rate.
It is time the banks were required to make a formal statement in response to a change in the ECB's benchmark rate.
The Banca Nationala a Romaniei announced May 2 that it is keeping the benchmark rate unchanged at 5.
Summary: DUBAI - Mubadala Development, a state-owned Abu Dhabi investment company, plans to pay 45 basis points above the benchmark rate on a $2 billion credit facility it's raising, according to two bankers familiar with the plan.
The Mexican central bank's benchmark rate had been at 4.
Thomson Reuters has added leading Islamic scholars and bankers to the supervisory bodies of the Islamic Interbank Benchmark Rate (IIBR), expanding geographic and community representation on IIBR Shariah panel and Islamic benchmark committee.
MANAMA: The world's first Islamic finance benchmark rate was launched yesterday by Thomson Reuters.
If the benchmark rate is too high, people and companies find it difficult to service the interest.
Financial industry sources said Sunday that major commercial banks raised the rate on housing loans, which is set proportionally to the certificate of deposit rate, after the benchmark rate was increased a quarter of a percentage point July 9.
5% above Bank Indonesia's benchmark rate as requested by the central bank.
lt;p>The central bank cut the benchmark rate from 3.