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

see INTEREST 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.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005

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References in periodicals archive

The decrease in the Base Rate follows the 25-basis point downward shift in the target range for the US federal funds rate on 31 July (US time).

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Axis Bank's base rate has been raised to 9.5 percent from 9.2 percent.

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Base rates for private and government cars range from P800 to P4,000 depending on the vehicles' gross weight.

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Under the agreement, IPL is authorized to increase base rates by $43.877 million, or approximately 45% of requested $96.7 million, similar to the level authorized in the last rate case, which was fully litigated and approved in March 2016.

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Trade association UK Finance previously said banks have made it easier for people to find the best deal for them and that people will be affected differently by the base rate rise depending on what type of product they have.

Fall in savings accounts paying above BoE base rate

Here is what providers have said so far: | RBS - The Royal Bank of Scotland, NatWest and Ulster Bank North base rate has also increased from 0.5% to 0.75%.

Hard-pressed savers left to wait as base rate rises

The next decision on the base rate will be announced on September 3, 2018 at 17:00 (GMT + 6).

National Bank of Kazakhstan keeps base rate at same level

Although the RBI had introduced the MCLR system with effect from April 1, 2016, the central bank in a statement said that a large proportion of bank loans continue to be linked to the base rate.

RBI to link base rate with MCLR

The current base rate is 0.25%, yet they are only giving savers 0.05% - 0.15%.

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But in recent weeks, there have been signs of mortgage costs edging up as speculation over a possible base rate rise has mounted, giving borrowers a taste of what could be to come.

No need to panic over mortgage rate edging up

The extent to which borrowers could expect to see a change in their mortgage costs when the base rate does eventually change depends on whether their deal is directly tied to the base rate.

No relief for savers as interest rate held

The base rate is the minimum rate of interest at which a bank can lend to borrowers.

Rajanleela prompts banks to slash rates