Weekly
PRIMBORRW • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
2,786.00
Year-over-Year Change
-67.59%
Date Range
1/15/2003 - 9/9/2020
Summary
The PRIMBORRW series tracks the prime borrowing rate, which represents the interest rate banks charge their most creditworthy corporate customers. This metric is a critical indicator of lending conditions and overall economic health.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
The prime borrowing rate serves as a benchmark for many other interest rates in the financial system, influencing everything from business loans to consumer credit products. Economists closely monitor this rate as a signal of monetary policy stance and credit market dynamics.
Methodology
The rate is determined by individual banks based on the federal funds rate and current market conditions, with major banks typically setting their prime rates in alignment with Federal Reserve policy.
Historical Context
Policymakers and financial analysts use the prime borrowing rate to assess credit market conditions, monetary policy effectiveness, and potential economic growth trajectories.
Key Facts
- The prime rate directly impacts business and consumer loan pricing
- Changes reflect broader monetary policy and economic conditions
- Typically moves in tandem with Federal Reserve policy decisions
FAQs
Q: How often does the prime borrowing rate change?
A: The prime rate can change when the Federal Reserve adjusts the federal funds rate, typically occurring during Federal Open Market Committee (FOMC) meetings.
Q: What types of loans are most affected by the prime rate?
A: Variable-rate loans such as business loans, home equity lines of credit, and some credit cards are directly influenced by changes in the prime borrowing rate.
Q: How is the prime rate calculated?
A: The prime rate is based on the federal funds rate, with major banks typically setting their rate at 3 percentage points above the federal funds rate.
Q: What does a rising prime rate indicate?
A: A rising prime rate often signals economic expansion and tightening monetary policy, potentially indicating efforts to control inflation.
Q: Are there limitations to using the prime borrowing rate?
A: While important, the prime rate is just one indicator and should be considered alongside other economic metrics for comprehensive analysis.
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Related Trends
Citation
U.S. Federal Reserve, Weekly [PRIMBORRW], retrieved from FRED.
Last Checked: 8/1/2025