Benchmark Rate
/ˈbɛn(t)ʃmɑrk reɪt/
Definitions
- (n.) A widely accepted reference interest rate used as a standard for setting other rates or financial contracts.
The loan agreement specifies that the interest will be calculated based on the benchmark rate.
Forms
- benchmark rate
- benchmark rates
Related terms
See also
Commentary
Benchmark rates are central in financial contracts and regulation; legal drafting should clearly specify the source and governance of the benchmark to avoid disputes.
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.