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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.


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Summary: The Bank of England voted unanimously earlier this month to hold the benchmark interest rate at 0.
Summary: Morocco is likely to leave its benchmark interest rate unchanged at 3.
The South African Reserve Bank on Thursday cut its benchmark interest rate by a full point to 8.
 
 
 
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