discount rate

discount rate

n.

1. The interest deducted in advance in purchasing, selling, or lending a commercial paper.

2. The interest rate charged by a central bank on loans to its member banks. A change in the discount rate is usually followed by similar changes in the interest rates charged by banks and money markets.

Thesaurus

Noun	1.	discount rate - the rate of interest set by the Federal Reserve that member banks are charged when they borrow money through the Federal Reserve System U.S.A., United States, United States of America, US, USA, America, the States, U.S. - North American republic containing 50 states - 48 conterminous states in North America plus Alaska in northwest North America and the Hawaiian Islands in the Pacific Ocean; achieved independence in 1776 interest rate, rate of interest - the percentage of a sum of money charged for its use
	2.	discount rate - interest on an annual basis deducted in advance on a loan bank discount, discount interest rate, rate of interest - the percentage of a sum of money charged for its use bank rate - the discount rate fixed by a central bank