Bank Prime Loan Rate Changes: Historical Dates of Changes and Rates
This dataset tracks bank prime loan rate changes: historical dates of changes and rates over time.
Latest Value
7.50
Year-over-Year Change
87.50%
Date Range
8/4/1955 - 12/20/2024
Summary
The Bank Prime Loan Rate represents the baseline interest rate that commercial banks charge their most creditworthy corporate customers. This rate serves as a critical benchmark for various lending products and reflects broader monetary policy conditions.
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
Economists closely track this rate as a key indicator of credit market conditions and overall economic health. The prime rate directly influences borrowing costs for businesses and consumers across multiple financial instruments.
Methodology
The rate is calculated based on the interest rates of the 30 largest U.S. banks, with changes typically following Federal Reserve monetary policy adjustments.
Historical Context
Policymakers and financial analysts use the prime rate to assess credit market dynamics, lending conditions, and potential economic stimulus or contraction.
Key Facts
- The prime rate typically moves in direct correlation with the Federal Reserve's federal funds rate
- Changes in the prime rate impact consumer loan and credit card interest rates
- Historically, the rate has ranged from near-zero during economic downturns to over 20% during high-inflation periods
FAQs
Q: How often does the prime rate change?
A: The prime rate can change whenever the Federal Reserve adjusts its benchmark interest rate, which typically occurs during Federal Open Market Committee (FOMC) meetings.
Q: How does the prime rate affect mortgage rates?
A: While not directly determining mortgage rates, the prime rate influences adjustable-rate mortgages and serves as a foundational reference for many lending products.
Q: What determines the specific prime rate?
A: The prime rate is based on the federal funds rate plus a margin, with major banks collectively setting the standard rate.
Q: How do businesses use the prime rate?
A: Companies use the prime rate as a benchmark for commercial loans, lines of credit, and other financing arrangements.
Q: How frequently is the prime rate data updated?
A: The prime rate is typically updated immediately following significant Federal Reserve policy changes, with real-time tracking available through financial data sources.
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Citation
U.S. Federal Reserve, Bank Prime Loan Rate Changes: Historical Dates of Changes and Rates [PRIME], retrieved from FRED.
Last Checked: 8/1/2025