Benchmark Interest Rate
/ˈbɛn(t)ʃmɑːrk ˈɪntrəst reɪt/
Definitions
- (n.) A standard interest rate used as a reference point for setting or adjusting rates on various financial instruments and contracts.
The loan's interest payments are calculated based on the benchmark interest rate set by the central bank.
Forms
- benchmark interest rate
- benchmark interest rates
Related terms
See also
Commentary
Benchmark interest rates are often specified precisely in contracts to avoid ambiguity and disputes over rate calculations.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.