Base rate: Difference between revisions

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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.  
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]]
[[Category:Interest_Rate_Risk]]

Revision as of 13:58, 9 October 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.


See also