Base rate: Difference between revisions
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A widely recognised and quoted interest rate - such as the Fed funds rate, the prime rate, or | 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, ‘LIBOR plus 50 basis points’. | For example, ‘LIBOR plus 50 basis points’. | ||
A central bank rate | A central bank rate may be known as Base Rate. This is normally the rate at which they will lend overnight funds to financial institutions and by changing this they can influence market rates. | ||
== See also == | == See also == | ||
* [[LIBOR]] | * [[LIBOR]] | ||
Revision as of 09:20, 2 August 2013
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, ‘LIBOR plus 50 basis points’.
A central bank rate may be known as Base Rate. This is normally the rate at which they will lend overnight funds to financial institutions and by changing this they can influence market rates.
