Definition of discount rate in English:

discount rate

Line breaks: dis|count rate

noun

Finance
  • 1The minimum interest rate set by the US Federal Reserve (and some other national banks) for lending to other banks.
    More example sentences
    • The discount rate is essentially the interest rate that banks and other depository institutions are charged to borrow from the Federal Reserve.
    • A key vote on a proposed increase in the discount rate occurred at a Federal Reserve Board meeting on December 3.
    • The Dow has rallied in the last two weeks following the last cut in the discount rate by the Federal Reserve.
  • 2A rate used for discounting bills of exchange.
    More example sentences
    • In this economic environment the average discount rate on Treasury bills is 4.95 per cent.
    • Discounting means selling the bill for cash at a discount, which depends on the discount rate and the number of days the bill has to run to maturity.

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