bank rate
Definition
Interest rate at which a central bank will advance short term loans to commercial banks. Changes in bank rate are reflected in the prime lending rates offered by commercial banks (to their best customers), which in turn affect investments such as bank deposits, bond issues, mortgages. This term has largely been replaced by newer terms base-rate and prime rate.
bank rate is in the Accounting & Auditing and Banking, Commerce & Finance subjects.
bank rate appears in the definition of the following term: European Central Bank (ECB)
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