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prime rate
This term is a technical financial benchmark used primarily in banking and lending. It serves as a reference point for other interest rates, such as those for mortgages or personal loans, which are often expressed as the prime rate plus a certain percentage. It carries a neutral, professional register and is most common in economic reports, financial news, and loan agreements.
Because it refers to a specific economic indicator, it is treated as a singular concept. While one can discuss different prime rates across different countries or time periods, in a general economic context, it functions as a specific named rate rather than a common countable object.
Meanings
Examples
The bank decided to raise the prime rate by twenty five basis points.
I wonder if the prime rate will drop before I apply for the loan.
Our interest payments are tied directly to the current prime rate.
The prime rate has remained stable for the last six months.
Why is the prime rate increasing so rapidly this quarter?
Most commercial loans are calculated as the prime rate plus a certain margin.
Most commercial loans are calculated as the prime rate plus a certain margin.
A sudden spike in the prime rate could jeopardize our expansion plans.
The company is struggling to manage debt as the prime rate climbs.