Definition of prime rate in English:

prime rate

Line breaks: prime rate

noun

chiefly North American
  • The lowest rate of interest at which money may be borrowed commercially: the banks have cut their prime rate by 4 percentage points
    More example sentences
    • The average rate for the credit lines is the prime rate - the interest rate banks charge their most creditworthy customers.
    • The interest rate would be 8% (the prime rate at that time) with no prepayment penalty clause.
    • Some short-term home-equity loans are tied to the prime rate; longer-term rates may be a point or two higher than your existing mortgage.

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