prime rate
noun
: an interest rate formally announced by a bank to be the lowest available at a particular time to its most credit-worthy customers
called also prime interest rate
Examples of prime rate in a Sentence
Recent Examples on the Web
The central bank cut the 1-year and 5-year loan prime rates by 10 basis points each in July, after keeping the 1-year unchanged for 10 straight months, and the 5-year unchanged for four months.
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Evelyn Cheng, CNBC, 16 Aug. 2024
The Federal Reserve's benchmark rate doesn't translate directly into movements in credit card annual percentage rates, or APRs, but because card rates are tied to the prime rate used by banks, which closely follows the Fed's federal funds rate, there is an indirect correlation.
—Khristopher J. Brooks, CBS News, 6 Aug. 2024
But its rate is the basis for your bank’s prime rate.
—Paul Davidson, USA TODAY, 20 Mar. 2024
Private student loans tend to have a variable rate tied to the prime rate, Treasury bill or another rate index, which means those borrowers are already paying more in interest.
—Jessica Dickler, CNBC, 31 July 2024
See all Example Sentences for prime rate 
Evelyn Cheng, CNBC, 16 Aug. 2024
The Federal Reserve's benchmark rate doesn't translate directly into movements in credit card annual percentage rates, or APRs, but because card rates are tied to the prime rate used by banks, which closely follows the Fed's federal funds rate, there is an indirect correlation.
—Khristopher J. Brooks, CBS News, 6 Aug. 2024
But its rate is the basis for your bank’s prime rate.
—Paul Davidson, USA TODAY, 20 Mar. 2024
Private student loans tend to have a variable rate tied to the prime rate, Treasury bill or another rate index, which means those borrowers are already paying more in interest.
—Jessica Dickler, CNBC, 31 July 2024
See all Example Sentences for prime rate
These examples are programmatically compiled from various online sources to illustrate current usage of the word 'prime rate.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.
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“Prime rate.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/prime%20rate. Accessed 26 Aug. 2024.
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