For high-yield bonds, this is often calculated at 50 bps over the benchmark rate.
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But such investments have been earning the benchmark rate minus some spread of late.
Yet it is unlikely that many contracts will have anticipated changes in the benchmark rate.
The Central Bank has raised its benchmark rate three times this year, taking it from 10.75% to 12%.
From June 2006 to September 2007, the Fed's benchmark rate sat at 5.25%.
In short, regulators believe banks lied about their own rates or perhaps even colluded to manipulate the daily benchmark rate.
The Bank of Japan has kept its benchmark rate between 0 and 0.1 percent to try to stimulate borrowing and spending.
However, the benchmark rate has fallen from a high of 2.06 percent reached March 11 as demand for low-risk assets increases.
He says he would slash wasteful public spending, leaving room for interest rates to fall (the Central Bank's benchmark rate is 10.25%).
Many mortgages across Europe track Euribor rather than the ECB benchmark rate.
If it lowers that target, it may compromise the Central Bank's ability to cut its benchmark rate (currently a stiff 13.75%) next year.
The fallout from Greece's financial difficulties had raised the cost of Ireland's borrowing to a record 3 percentage points over the German benchmark rate.
The central bank hoisted its short-rate no less than seven times in a thirteen-month period of tightening starting October 2009 lifting the benchmark rate to 4.75%.
Simultaneously, the ceiling on bank deposit rates was raised to 1.1x from 1.0x the benchmark rate, and the floor for lending rates was lowered to 0.8x from 0.9x.
The move was expected to prompt commercial banks to trim their prime lending rate, which would reduce the benchmark rate for millions of consumer and business loans to 7.25 percent.
Its ability to adjust the benchmark rate, in an attempt to minimize the whiplash of recession, has the unfortunate effect of helping one goal at the expense of the other.
The benchmark lending rate was reduced by 0.25 percentage point late Thursday to 6.31% and the benchmark deposit rate to 3.25%, the first cut in borrowing costs since December 2008.
In finding Barclays guilty of attempting to manipulate the important Libor borrowing rate, the benchmark rate for bank-to-bank lending, the Financial Services Authority (FSA) made an elliptical reference to this conversation.
The Bank of Canada meets on Tuesday to discuss the latest series of economic releases and has to reconcile a current 1% benchmark rate of interest along with a deteriorating take on inflation.
These loans may offer protection from rising interest rates, because unlike traditional bonds, the interest rate on these loans adjusts (usually every 90 days) based on changes in a benchmark rate (usually LIBOR).
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The National Bank of Poland in November began easing policy and on Wednesday cut its rates for the third time in a row, moving its benchmark rate to 4% to prop up the economy.
Yet, despite warnings from IMF chief Christine Lagarde and prominent American economist Nouriel Roubini, the European Central Bank has left rates unchanged since July 2012, with the benchmark rate standing pat at 0.75%.
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The traders in Frankfurt were suspended over Euribor - a benchmark rate based on the rate at which banks based in in the eurozone can borrow, in contrast to Libor which is based on the borrowing cost of London-based banks.
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In June, the PBOC announced that banks will be allowed to offer loans at interest rates up to 20 percent below the benchmark rate and be free to pay savers a rate up to 10 percent above the ceiling rate.
On Thursday, the European Central Bank cut its official deposit rate for overnight lending to the central bank by 50 basis points, to 1.0%, below its 2.5% benchmark rate, in an attempt to wean banks off the safety of its vaults and thus stimulate interbank lending.
Traders ended their day seeing more flashing red screens as equities saw another session of huge drops, even after the U.S. Federal Reserve, European Central Bank, and central banks in Britain, Canada, Sweden and Switzerland said they were all cutting the benchmark rate of borrowing by 0.5%.
It will look at the how the Libor rate, which is the benchmark interest rate for millions of financial transactions, is calculated and regulated.
For the past year, the swap facility has been priced at a prohibitively expensive 1% over the rate for overnight index swaps, the benchmark interbank rate, in order to discourage moral hazard.
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