Reference period
From ACT Wiki
Interest rates - quotation.
A period of time in relation to which an amount of interest payable or receivable is quoted.
In wholesale markets, this period is almost always a year.
- Interest - counting days - conventions
- "The day count convention determines how interest accrues over time in a variety of transactions...
- In wholesale markets interest is usually expressed to accrue at a rate per annum (the reference period).
- It is often due and payable at shorter intervals, usually a number of months (the interest period)."
- Day count conventions - the Treasurer's wiki.
In retail markets, reference periods - especially for borrowing - may sometimes be shorter.
However, it is generally mandatory for the provider of retail credit to quote an Annual Percentage Rate - or other appropriate comparator rate, depending on the jurisdiction - in addition to the reference rate.
