Base rate: Difference between revisions
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A central bank rate can be known as a Base Rate. This is 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 can be known as a Base Rate. This is 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 15:48, 12 June 2013
A widely recognised and quoted interest rate - such as the Fed funds rate, the prime rate, or the London Inter Bank Offered Rate (LIBOR) - by reference to which a rate of interest is calculated.
For example, ‘LIBOR plus 50 basis points’.
A central bank rate can be known as a Base Rate. This is the rate at which they will lend overnight funds to financial institutions and by changing this they can influence market rates.
