An interest rate used as an index rate. For example, if a loan pays interest at a rate of 50 basis points above the 6-month LIBOR, the reference rate is the 6-month LIBOR.
On 1 July 2002 the reference rate replaced the discount rate, which used to be set by the Swedish National Debt Office. The reference rate is determined by the Riksbank semi-annually and is based on the repo rate that applies at the end of the past six months rounded up to the nearest whole or half percentage point.
A feature, offered by NAB, which lets the borrower 'step up' their home loan repayments each year of the loan's variable rate period to help pay off the loan faster. Find out more.
The rate on which the underlying loan is based. For example, Prime, commercial paper or LIBOR.
A base rate, such as the Prime Rate, used in the calculations of variable credit card interest rates.
The underlying index or rate upon which a floating-rate security is based. The reference rate is used in the calculations of variable credit card interest rates.
Mortgage or financial market rate which is used for revisions of variable rate loansâ€(tm) interest rates.
An interest rate that is calculated using a long-term bond rate that is issued by the Government of Canada. The reference rate is used when calculating maximum payments from a LIF and will always be 6% or greater.
benchmark 'interest rate (such as LIBOR), used to specify conditions of an interest rate swap or an interest rate agreement.
Required Rate of Return RRR Required return
A reference rate is a rate that determines pay-offs in a financial contract and that is outside the control of the parties to the contract. It is often some form of LIBOR rate, but it can take many forms, such as a consumer price index, a house price index or an unemployment rate. Parties to the contract choose aa reference rate that neither party has power to manipulate.
