Reference rate

A reference rate is a widely recognised and quoted interest rate - such as the Fed funds rate, the prime rate, or LIBOR - by reference to which a rate of interest is calculated.

For example, in the rate ‘LIBOR plus 50 basis points’, LIBOR is the reference rate.

See also

• Adjustable-rate mortgage
• ARRC
• Base rate
• Fallback
• LIBOR
• Loan agreement
• OBFR
• Official Bank Rate
• Zero rate provision