Reference 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 LIBOR - by reference to which a rate of interest is calculated. | 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. | For example, in the rate ‘LIBOR plus 50 basis points’, LIBOR is the reference rate. | ||
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*[[ARRC]] | *[[ARRC]] | ||
*[[Base rate]] | *[[Base rate]] | ||
*[[Fallback]] | |||
*[[LIBOR]] | *[[LIBOR]] | ||
*[[Loan agreement]] | *[[Loan agreement]] | ||
Revision as of 19:47, 17 February 2019
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.
