The prime rate
, not a deposit rate, is the focus in this article because the prevailing prime rate
is much more uniform across banks than any measure of the prevailing deposit rate.
Recently, the prime rate
has become less popular as the reference rate of housing loans.
ING Prime Rate
Trust said that it was the first fund to invest in a portfolio of floating rate senior bank loans.
The increase in the Prime Rate
is effective from 1 July 2007.
The Bank of Tokyo-Mitsubishi UFJ decided last week to raise its short-term prime rate
also a quarter point to 1.
Nordea Finland, part of the pan-Nordic financial group Nordea AB, said on Tuesday (9 January) that it will raise its Prime Rate
Analysts expect the prime rate
hike will have little impact on corporate borrowers, as banks actually offer lower rates than their prime rates
in many cases to beat the competition.
Mizuho Corporate Bank said Thursday it will lower its long-term prime rate
Concerns have been raised over adverse effects of a possible raise in the prime rate
, which could pour cold water on companies' plans for capital investment.