prime rate
noun
: an interest rate formally announced by a bank to be the lowest available at a particular time to its most credit-worthy customers
called also prime interest rate
Examples of prime rate in a Sentence
Recent Examples on the Web
The central bank increased its federal funds rate multiple times between 2022 and 2023, and that pushed consumer interest rates up as a result, particularly those tied to the prime rate, which is the majority of consumer credit cards.
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Aly J Yale, CBS News, 4 Feb. 2026
Shorter-term rates are more closely pegged to the prime rate, which is typically 3 percentage points above the federal funds rate.
—Jessica Dickler, CNBC, 26 Jan. 2026
The index: Most HELOC lenders use Wall Street’s prime rate.
—Jeff Lazerson, Oc Register, 11 Dec. 2025
The prime rate — now 7.25% — drops in tandem with a Fed rate cut.
—Susan Tompor, Freep.com, 23 Oct. 2025
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Aly J Yale, CBS News, 4 Feb. 2026
Shorter-term rates are more closely pegged to the prime rate, which is typically 3 percentage points above the federal funds rate.
—Jessica Dickler, CNBC, 26 Jan. 2026
The index: Most HELOC lenders use Wall Street’s prime rate.
—Jeff Lazerson, Oc Register, 11 Dec. 2025
The prime rate — now 7.25% — drops in tandem with a Fed rate cut.
—Susan Tompor, Freep.com, 23 Oct. 2025
See All Example Sentences for prime rate
Cite this Entry
“Prime rate.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/prime%20rate. Accessed 15 Feb. 2026.
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