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discount rate
(redirected from Discount Interest Rates)

   Also found in: Dictionary/thesaurus, Financial, Wikipedia 0.01 sec.

discount rate

 or bank rate

Interest rate charged by a central bank for loans of reserve funds to commercial banks and other financial intermediaries. The discount rate is one important indicator of the condition of monetary policy in an economy. Because raising or lowering the discount rate alters the rates that commercial banks charge on loans, adjustment of the discount rate is used as a tool to combat recession and inflation.



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However, they also use their third party claims administration firms and their investment managers to assist in the development of estimates of unallocated loss adjustment expenses and projecting conservative, yet realistic, discount interest rates.
If the money intends to be used for home improvements, then most lenders will offer special discount interest rates and other special terms.
Mr Archer added: "Accelerating service sector activity in August, and still robust new business growth, indicate that it is premature to discount interest rates reaching six per cent before the end of the year.
 
 
 
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