base rate

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Base rate

British equivalent of the US prime rate.

Discount Rate

The interest rate at which the Federal Reserve makes short-term loans to member banks. The discount rate is an indicator of the direction in which the Federal Reserve is trying to push the broader economy. In general, a low interest rate indicates that it is trying to promote growth by making liquidity easily available, and a high interest rate shows that the Fed is concerned about inflationary pressures on the economy and trying to reduce the amount of money in the economy. Along with the sale of Treasury securities and the determining of the fed funds rate, setting the discount rate is one of the primary ways the Federal Reserve sets the monetary policy of the United States.

base rate


base rate

the INTEREST RATE that is used by the COMMERCIAL BANKS to calculate rates of interest to be charged on bank loans and overdrafts to their customers. For example, a large company might be charged, say, an interest rate of base rate plus 2% on a loan, whereas a smaller borrower might be charged, say, base rate plus 4%. Formerly, base rates were linked directly to BANK RATE but are now fixed by reference to the ‘official’ rate of interest set by the MONETARY POLICY COMMITTEE of the Bank of England. See PRIME RATE.
References in periodicals archive ?
Maybank today announced that it will be revising its Base Rate and Base Lending Rate effective 15 July 2016, in line with the decrease in the Overnight Policy Rate by Bank Negara Malaysia.
We have reduced our base rate by 35 basis points from 10 percent to 9.
The bank has reduced the base rate, or minimum lending, by 0.
Union Bank of India said that its asset liability committee, in its quarterly review of interest rates, has decided to bring down base rate by 10 basis points (100 bps =1%) from 10.
While HDFC Bank had increased its base rate by 25bps to 7.
If you are grappling with the answer to this question, your home loan was probably taken during the benchmark prime lending rate (BPLR) regime and you haven't switched to the new base rate system.
Summary: In a move that could increase transparency and efficiency in loan pricing, the Reserve Bank of India (RBI) has proposed that all loans be priced off a base rate as against the current practice of linking them to the so-called benchmark prime lending rate (BPLR).
We expect lower fuel prices to more than offset an increase in base rates.
If indiscriminate neglect of base rate information were the sole explanation, then what would be the relation between base rates and overconfidence?
NS) has said that it has reduced its base rate by 0.