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 ?
The apex bank cut its benchmark interest rate to a record low on Thursday to stimulate the economy.
Meanwhile, the Bank of England is widely expected to hold the benchmark interest rate steady at the record-low of 0.
It said that the policy decision on raising the benchmark interest rate was made on the expectation that the consumer price inflation would remain high, according to a statement from the bank.
My picks: Short EUR/GBP Expertise: Global Macro Average Time Frame of Trades: 1 weekThis Thursday, the European Central Bank cut its benchmark interest rate by 25 bps to 1 percent.
The apex bank said that it held the benchmark interest rate at 4 percent on Thursday.
9055, the 50-Day SMA, last week, the surge on Friday triggered my trade, and I will remain short the pair as the European Central Bank is widely expected to lower the benchmark interest rate further next month.
Germany has warned of the pitfalls of low interest rates, a week after the European Central Bank cut its benchmark interest rate to 0.
In fact, the Bank of England has been very proactive than the ECB cutting its benchmark interest rate to the lowest level in the bank's more than 300 years of history.
Summary: The Bank of England held the benchmark interest rate at the record low of 0.
The Bank of Thailand decided to leave its benchmark interest rate unchanged for the second straight meeting, even as increasing household debt and capital outflows contributed to limiting the scope for monetary easing to revive an economy that is in recession.
Summary: The European Central Bank lowered the benchmark interest rate by 25bp to a record-low of 1.
The Banco de Mexico left its benchmark interest rate at 4 percent, in line with the expectations of analysts in a Reuters poll.