Wall Street Journal prime rate

:"This article deals with the Wall Street Journal Prime Rate. Also see Prime rate."

The Wall Street Journal Prime Rate (WSJ Prime Rate) is defined by The Wall Street Journal (WSJ) as "The base rate on corporate loans posted by at least 75% of the nation's 30 largest banks." It is not the 'best' rate offered by banks. It should not be confused with the federal funds rate set by the Federal Reserve, though these two rates often move in tandem. The current rate is 4.5% (as of 2008-10-08).

The print edition of the WSJ is generally the official source of the prime rate. The Wall Street Journal prime rate is considered a trailing economic indicator. Many (if not most) lenders specify this as their source of this index and set their prime rates according to the rates published in the Wall Street Journal. Because most consumer interest rates are based upon the Wall Street Journal Prime Rate, when this rate changes, most consumers can expect to see the interest rates of credit cards, auto loans and other consumer debt change.

The prime rate does not change at regular intervals. It changes only when the nation's "largest banks" decide on the need to raise, or lower, their "base rate." The prime rate may not change for years, but it has also changed several times in a single year.

Historical data for the Wall Street Journal prime rate

Source

* Various editions of the Wall Street Journal

External links

* [http://online.wsj.com/mdc/public/page/2_3020-moneyrate.html International Prime Rates published by The Wall Street Journal Online]
* [http://www.hsh.com/indices/prime00s.html HSH Associates, Financial Publishers]

See also

* Wall Street Journal
* Prime rate
* Federal Reserve


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