Definition

Noun: - The interest rate set by a central bank: The "bank rate" is the official interest rate at which a nation's central bank (such as the Federal Reserve in the US or the Bank of England in the UK) lends money to domestic commercial banks. This rate is a primary tool of monetary policy used to influence other interest rates, control inflation, and manage economic growth.

Usage

The term "bank rate" is used in financial, economic, and news contexts to discuss central bank policy and its impact on the broader economy. - It is often discussed when a central bank announces a change in its policy. - It is a key benchmark that influences the rates commercial banks charge their customers.

Examples

Advanced Usage

• "Bank rate decision": Refers to the official announcement or the act of changing the bank rate.
  • The market is anxiously awaiting the central bank's bank rate decision tomorrow.
• "Bank rate hike/cut": Specifically describes an increase or decrease in the bank rate.
  • The recent bank rate hike has made mortgages more expensive.

Variants and Related Words

• Discount rate: A closely related term, often used synonymously with "bank rate" in some contexts, referring to the interest rate charged to commercial banks for loans received from the central bank's discount window.
• Policy rate: A broader term encompassing key interest rates set by a central bank, which includes the bank rate.
• Base rate: A similar concept; the minimum lending rate set by a central bank, which influences all other rates in the economy.
• Central bank: The institution that sets the bank rate.

Synonyms

• Central bank rate
• Official discount rate
• Key policy rate

Related Phrases

• Set the bank rate: The action of the central bank establishing the interest rate.
  • The committee will meet to set the bank rate for the next quarter.
• At the bank rate: Describes a transaction or loan made using this specific interest rate.
  • The emergency liquidity was provided at the bank rate.

Noun

1. the discount rate fixed by a central bank