What is the Prime Rate? The Prime Interest Rate is the interest rate charged by banks to their most creditworthy customers (usually the most prominent and stable business customers). The rate is almost always the same amongst major banks. Adjustments to the prime rate are made by banks at the same time; although, the prime rate does not adjust on any regular basis. The Prime Rate is usually adjusted at the same time and in correlation to the adjustments of the Fed Funds Rate. The Prime Rate graph and chart reported below are based upon the prime rates on the first day of each respective month over the past decade. Some banks use the name “Reference Rate” or “Base Lending Rate” to refer to their Prime Lending Rate. Publications may refer to the Wall Street Journal Prime Rate or the WSJ Prime Rate in addition to “Prime Rate”.
The history of the Prime Rate since 1930 can be found http://www.moneycafe.com/personal-finance/prime-rate-history/.
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Source: Federal Reserve Board
The history of the Prime Rate since 1930 can be found at http://www.moneycafe.com/personal-finance/prime-rate-history/.
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