What affects the prime rate?

Answer The prime rate is the interest rate banks offer to their most credit-worthy customers, usually large corporations. The prime rate is based on interest rates set by the federal government and affect... Read More »

Top Q&A For: What affects the prime rate

What is the difference between the prime rate&the target rate?

The prime rate and the target rate are both interest rates that help determine how much it costs to get a loan from the bank. One rate influences the other.The Prime RateThe prime rate is the benc... Read More »

How Does the Prime Rate Impact a Mortgage Rate?

The prime rate is set by the Federal Reserve and is the interest rate lenders charge their most creditworthy customers. The "prime" fluctuates in relation to the fed fund rate from the Federal Res... Read More »

How Does the Key Interest Rate Compare to a Prime Rate?

The key interest rate that controls the prime rate is known as the overnight fed funds rate. This key rate is the interest rate that banks lend and borrow money at between each other. On the other ... Read More »

Is prime rate the commercial lending rate?

The prime rate is now an index, or benchmark, that is set by banks. The banks use it to derive pricing for a number of different loans. Although loans at this rate can be extended to "prime" commer... Read More »