Benchmark interest rate

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 ?
In February, FASB plans to release a proposal to add a fifth benchmark interest rate to the acceptable rates for hedge accounting.
The apex bank held its benchmark interest rate at 4 percent on Thursday.
The Board of Directors of Banco de la Repblica, at todays meeting, decided to reduce the benchmark interest rate by 50 bp to 6.
Summary: The State Bank of Pakistan (SBP) on Saturday left the benchmark interest rate unchanged at 5.
At the same time however the job market slowed, which led to the Fed's decision to leave its benchmark interest rate unchanged, the Fed says in its statement on monetary policy.
central bank on Wednesday announced to raise benchmark interest rate by 25 basis points, the first interest rate increase since 2006, marking the end of an era of extraordinary easing monetary policies.
The Canadian dollar took another surprise dive on July 15 after Canada's central bank lowered its benchmark interest rate to 0.
Most Federal Open Market Committee participants reiterated their view that the Fed will refrain from raising the benchmark interest rate until 2015.
The benchmark interest rate in Pakistan was last recorded at 10 percent.
M2 EQUITYBITES-November 7, 2013-European Central Bank cuts benchmark interest rate to a record low of 0.
FRANCFORT (TAP) - The European Central Bank (ECB) has cut its benchmark interest rate to a new record low amid ongoing worries about the eurozone's economic health.
The Bank of Korea (BOK) lowered its benchmark interest rate by 25 basis points to 2.