bank rate

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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.

bank rate

see INTEREST RATE.

bank rate

the former ‘official’ INTEREST RATE that was administered by the government as part of MONETARY POLICY in controlling the economy. Bank rate operated as the BASE RATE for the banking system, influencing interest rates charged on bank loans, mortgages and instalment credit. Bank rate was replaced in 1972 by the ‘minimum lending rate’, which itself was abolished in 1984. The ‘official’ interest rate is now set by the MONETARY POLICY COMMITTEE of the BANK OF ENGLAND. See Fig. 125.

bank rate

See discount rate.
References in periodicals archive ?
Following RBI's policy review for 2015-16, several banks, including public sector lender, State Bank of India (SBI) (SBIN.NS) (500112.BO) (OTC: SBKJY), have cut the minimum lending rates.
Following the RBI's policy action on Tuesday, several banks including State Bank of India (SBI) (SBIN.NS) (500112.BO) (OTC: SBKJY) reduced its base rate or minimum lending rate to 9.70 per cent from 9.85 per cent effective June 8.
The bank's minimum lending rate will be 6.12 percent, the minimum overdraft rate will be at 6.40 percent, and the minimum retail rate will be 6.65 percent, the bank said.
Indian state-owned Allahabad Bank (532480.BO) (ALBK.NS) (ALLBANK.NS) has cut its base rate or minimum lending rate by 0.3 per cent after the Reserve Bank of India (RBI) announced a cut in its key policy rate on Tuesday, according to a report by the Economic Times.
Indian private sector lender Karnataka Bank (KBL) (KBNK.BO) (KTKBANK.NS) (590002.BO) has cut the base rate or minimum lending rate by 0.25 per cent to 10.50 per cent, according to a report by the Economic Times.
Indian state-run lender Corporation Bank (532179.BO) (CORPBANK.NS) has cut the base rate or minimum lending rate by 0.25 percentage point, a move which will reduce EMIs for its customers, the Press Trust has reported.
The bank has reduced the base rate or minimum lending rate from 10.25 percent to 10.10 percent effective from May 6, SBBJ said in a statement.
However, for other borrowers, the interest rate will be 9.90 percent, five basis points higher than the base rate or the minimum lending rate.
The bank said that it would also look at cutting the base rate or minimum lending rate, which is presently at 10.25 percent.
State-owned United Bank of India (533171.BOM) has cut its base rate or the minimum lending rate by 0.25 percent to 10 percent, the Economic Times has reported.

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