discount rate


Also found in: Thesaurus, Financial, Acronyms, Wikipedia.
Related to discount rate: Federal funds rate

discount rate

n.
1. 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.
2. The interest rate used in determining the present value of a future payment or series of payments.

discount rate

n
1. (Banking & Finance) the amount of interest deducted in the purchase or sale of or the loan of money on unmatured negotiable instruments
2. (Banking & Finance) the rate of interest deducted
ThesaurusAntonymsRelated WordsSynonymsLegend:
Noun1.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 loandiscount rate - interest on an annual basis deducted in advance on a loan
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
References in periodicals archive ?
He added that the reduction of the discount rate is a factor in decrease of interest rates on loans, noting that, however, other factors also affect this.
The so-called discount rate is a notional figure which is applied when someone is awarded a lump sum for future financial loss.
Interest rate on the repo operations with the CBO is 2.981 per cent for the period from April 23 to April 29 while discount rate on treasury bills discounting facility with CBO is 3.731 per cent for the same period.
It said the discount rates will be based on the average rates charged by a television or radio company during the last three years prior to the forthcoming polls.
The discount rate is used to help calculate lump sum compensation to cover disadvantage such as future salary losses or future care costs in personal injury cases.
Therefore, the uniform weighted discount rate according to a formula that weights the discount rate for the existing Series F debentures, with the discount rate as determined in the Additional Issuance of the additional debentures is 0.085223%.
Azerbaijan's apex bank has said that it has lowered its discount rate.
The State Bank of Pakistan brought down the discount rate to 5.75 percent last year which reminds us of the increase in the discount rate by 200 basis points to 15 percent in November 2008.
The discount rate is the minimum rate of return required by investors to invest in stocks.
"The discount rate is 6.9% from October 3," said the NBT.
Clearly, the discount rate used in the assessment is important to the rule's economic justification.
He said that business community was expecting a reduction of 50 or 100 basis points in the discount rate. It was their long standing demand to bring down the discount rate to a single-digit.