Historically, in North American banking, the prime rate was the interest rate charged by lenders to borrowers who they considered most primerate creditworthy, although this is no longer the case. The prime rate varies prime rate little among banks, and adjustments are generally made by banks at the same time, although this does not prime interest rate happen with great frequency. The prime rate is currently 8.25% in the United States (verified wall street journal prime rate August 15, 2006), according to data published by current prime rate the Federal Reserve Bank of Saint Louis. The current prime rate for Canadian banks is currently 6.00%.
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Historical U.S. Prime Rates
In general, the prime rate runs approximately 3% above the prime rate history Federal Funds Rate, the interest rate that banks charge to each other for overnight loans made to fulfill reserve banks prime interest rate funding requirements. (The Federal funds prime interest rates future rate plus a much smaller increment is frequently used for lending prime current interest rate to the most creditworthy borrowers today, as is LIBOR, the London Interbank Offered Rate.) The Federal Open Market Committee (FOMC) meets eight prime interest prime rate times per year wherein they set a target for prime interest rate chart the federal funds rate. Other rates, including the Prime Rate, derive from this base rate.
The most commonly recognized prime prime interest rate forecast rate index is the Wall Street Journal prime interest rate hedging Prime Rate (WSJ Prime Rate), published in the Wall Street Journal. Unlike other indexed prime rate interest projections rates, the prime rate does not change on a regular basis; rather, it changes whenever prime rate projections banks need to alter the rates at which borrowers obtain funds. The WSJ defines prime interest rates the prime rate as "The base today's prime interest rate rate on corporate loans posted by at least 75% of the nation's 30 largest banks." It has been speculated though that prime rate historical this is no longer the federal reserve prime rate real definition, (and that the prime rate is simply the fed funds target rate us prime rate + 3) because most corporate loans are indexed to LIBOR.
When 23 out canadian prime rate of 30 of the United States' what is the prime rate largest banks change their prime rate, the WSJ prints a composite prime rate change.
The Prime Rate current prime lending rate is used often in calculating mortgages and other variable what is the current prime rate rate loans. It is used in the calculation of some private student historical prime rate loans. Many credit cards with variable interest rates have their rate specified as the prime rate federal prime rate plus a fixed value.
- Money Cafe Prime Rate including historical data
- Prime Rate Changes History: Dates and Rates - Fed prime rate, not WSJ prime what is prime rate rate
- Enth: Searchable Prime Rate data
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