bank rate


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Related to bank rate: 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.

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 ?
The Committee will monitor closely the incoming evidence on the evolving economic outlook, including the impact of last month's increase in Bank Rate, and stands ready to respond to developments as they unfold to ensure a sustainable return of inflation to the 2% target.
It currently anticipates that perhaps a couple more quarter of a per cent increases in Bank Rate are likely to be needed over the next three years.
By moving Bank Rate by more than inflation, the monetary authority raises or lowers the real rate above or below the natural rate in order to propel the economy back to its normal state, point A.
The MPC has said that it is more likely than not that Bank Rate will need to be increased by the end of the forecast period than at present in an effort to make sure that inflation returns to the target in a sustainable manner, with all members agreeing that when the Bank Rate does begin to increase it is expected to so more gradually and to a lower level than in recent cycles.
The central bank has cut the countryaACAOs bank rate for the fourth time by half a percentage, the last was in August to 8.
With a focus on having a strategic approach to maximizing returns and managing costs and fees for consumers, the regional manager in responsible for sorting through the latest bank rate data and presenting the best opportunities in the current banking environment The bank rates presented are aggregated from online research, direct contact and updated telephone surveys to compare and then display the best bank rates in the market.
Philip Shaw at Investec Economics is pencilling in a no change for QE and said Mr Carney made it clear in his recent address that it is the Bank rate that counts, rather than market expectations.
Executives with some of the smaller and new banks, which have lower current account-savings bank account (Casa) balances, said if the savings bank rate was freed, they would immediately raise rates.
The country's banking industry said three weeks ago that it will have an answer at the end of October to the recent request by central bank governor, Tom Alweendo that commercial banks decrease the spread between the bank rate and the prime-lending rate from 475 basis points (bps) to 425bps by the end of the year and to 375bps by October next year.
There was a heart-warming performance to go with it when Bank Rate won the valuable Swaffham Cup, sponsored by Vosts, the Newmarket fine art auctioneers.
Their figures were based on data compiled by Bank Rate Monitor, an industry trade publication.
Last December, according to the Bank Rate Monitor, a fixed-rate 15-year mortgage issued from a bank carried an interest rate of 8.