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.
References in periodicals archive ?
Term deposit rates ease from record highs !-- -- Lawrence Agcaoili (The Philippine Star) - October 18, 2018 - 12:00am MANILA, Philippines Term deposits fetched lower yields as banks swarmed yesterday's auction with rates starting to normalize after the Bangko Sentral ng Pilipinas (BSP) raised benchmark rates by 150 basis points so far this year.
'We got a tight pricing using the five-year benchmark rates. So you will be buying 10-year bonds for the price of five years.
The interest rate, which would be produced before 2020, would complement existing benchmark rates produced by the private sector and serve as a backstop reference rate.
Further, the CBE raised benchmark rates by 300 basis points, with the main policy operation rate increasing to 15.25%.
(3) In 2014, AT&T filed a formal complaint with the FCC alleging that Great Lakes was charging access fees that are greater than the benchmark rates imposed on CLECs.
Benchmark rates will rise in 37 HealthCare.gov states.
The apex bank held its benchmark rates unchanged on Thursday despite the markets expecting another cut.
Commodity Futures Trading Commission (CFTC) to settle its investigations into LIBOR (London Interbank Offered Rate) and related interbank offered rates and USD ISDAFIX (International Swaps and Derivatives Association Fix) benchmark rates. Under the terms of the settlements, Citi will pay $175 million related to LIBOR and $250 million related to ISDAFIX.
The CFTC said on Wednesday the bank was also charged with false reporting in connection with ISDAFIX benchmark rates and with false reporting of U.S.
While the fixed rate protects the borrower from a rise in the benchmark rates, it does not allow the borrower to take advantage or enjoy a lower rate when the benchmark rate falls.
While the fixed protects the borrower from a rate the own rate rise in the benchmark rates, it does not allow the borrower to take advantage or enjoy a lower rate when the benchmark rate falls.
"We have no plans at the moment to change the official benchmark rates," Hamoud Sangour Al Zadjali, executive president of the Central Bank of Oman, told the Times of Oman.