benchmark interest rate

Meanings

• noun

  The interest rate set by a central bank or other financial authority as a reference for lending or borrowing in the economy.

  - "The central bank announced a new benchmark interest rate of 2%."
  - "The benchmark interest rate affects the rates offered by commercial banks."

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Variants

List of all variants of benchmark interest rate that leads to same result
prime interest rate , prime rate , prime rates

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Etymology

origin and the way in which meanings have changed throughout history.

The term 'benchmark' comes from the use of a bench or table as a reference point for measurements. 'Interest rate' is the percentage of a loan or borrowed amount that is charged over a specified period.

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Trivia

Any details, considerations, events or pieces of information regarding the word

1. The benchmark interest rate is also known as the 'base rate'.

2. The European Central Bank uses the main refinancing operation rate as its benchmark interest rate.

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Related Concepts

informations on related concepts or terms closely associated with the word. Discuss semantic fields or domains that the word belongs to

1. Central Bank: An independent institution that manages a country's monetary policy and issues currency.

2. Monetary Policy: The actions taken by a central bank to influence the supply of money and credit in an economy.

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Culture

Any cultural, historical, or symbolic significance of the word. Explore how the word has been used in literature, art, music, or other forms of expression.

The benchmark interest rate is a crucial economic indicator that influences borrowing costs, inflation, and economic growth.

How to Memorize "benchmark interest rate"

1. visualize
   

   - Imagine a bench with a marker or plaque displaying the interest rate as a reference point for economic indicators.

2. associate
   

   - Associate the benchmark interest rate with the cost of borrowing money, as it sets the base rate for lending.

3. mnemonics
   

   - Create a mnemonic by remembering 'BIR' stands for Benchmark Interest Rate.

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