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discount rate
(redirected from discount rates)

   Also found in: Dictionary/thesaurus, Financial, Wikipedia, Hutchinson 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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The discount rates reflect that the bills sell for less than face value.
Often, institutional discount rates are established and applied to the analysis of all projects.
Discount rates are calculated by dividing total tuition and fee revenue by institutional financial aid.
 
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