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Reference Rate

   Also found in: Wikipedia 0.02 sec.
Reference rate
A benchmark interest rate (such as LIBOR) used to specify conditions of an interest rate swap or an interest rate agreement.

Reference Rate
A floating interest rate or other benchmark used in some investment vehicles. For example, in an interest rate swap, the reference rate is the floating interest rate that one of the counterparties is paid. Likewise, in an adjustable-rate mortgage, the reference rate is the floating interest rate that helps determine the interest rate the property owner pays. Usually, the reference rate is LIBOR or some other interest rate that is adjusted on a daily basis.


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The first hike in the reference rate for auto insurance in nine years is due to increased auto insurance payments to policyholders which have eaten into nonlife insurers' earnings.
Summary: DUBAI - Banks in the United Arab Emirates launched a one-week interbank offered rate on Monday, striving to meet demand for a reference rate for short-term liquidity.
But Stark said that "despite a higher reference rate, eurozone financing conditions are more favourable than in Britain or the United States" in the medium and long term.
 
 
 
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