Reference rate


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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.
References in periodicals archive ?
The Fed's Alternative Reference Rate Committee recommended SOFR as the main rate, which will be published beginning on April 3 at 08:00 ET, reflecting the SOFR, BGCR, and TGCR from April 2.
This is also reflected in two general recommendations of the Financial Stability Board (FSB) that aim to guide the reform of the reference rate and the transition to alternative benchmarks.
and its affiliates, a part of HSBC Holdings Plc (LSE: HSBA) (NYSE: HBC) (HKG: 0005), have said that they have increased their prime and reference rate from 4.
The Reserve Bank of India has fixed the reference rate of the rupee at 66.
The move was part of the central bank's stated aim to bring the currency reference rate in line with the offshore exchange rate.
TOKYO, Nov 2 (KUNA) -- China's central bank on Monday raised the reference rate for the Chinese yuan (renminbi) against the US dollar by the biggest one-day gain in 10 years.
Chinese authorities keep a tight grip on the currency and it is only allowed to fluctuate up or down two percent on either side of the reference rate.
The reference rate is set by the Central Bank every three months and if exceeded it is considered a violation of the law.
The London Interbank Offered Rate (LIBOR) is the reference rate at which large banks indicate that they can borrow short-term wholesale funds from one another on an unsecured basis in the interbank market.
Nordea applies the prime rate as a reference rate both in deposits and in housing loans.
The 1993 System of National Accounts recognized that some implicit intermediation services are provided to borrowers, and it measured these services based on the margin between loan rates and a reference rate that represented the bank's opportunity cost of funds.
This new reference rate is still far stronger than the value of the Rial in the country's unofficial market rate of 33,000 Rials, a rate at which most Iranians can access hard currency.