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It last changed on November specify this as their source of this index. See Prime Rate histories for and history covering present.
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| Bmo harris bank netoxygen | Determining the Prime Rate. The prime rate dates back to the s when banks first used it to set interest rates for short-term lending to their most creditworthy customers following the Great Depression. Partner Links. Fed Funds Rate Current target rate 4. The prime rate is reserved for only the most qualified customers, those who pose the least amount of default risk. Changes in the federal funds rate have far-reaching effects by influencing the borrowing cost of banks in the overnight lending market, and subsequently the returns offered on bank deposit products such as certificates of deposit, savings accounts and money market accounts. It increases the federal funds rate to bring inflation under control. |
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