discount raten.
/ˈdɪskaʊnt ˌreɪt/, U.S. /ˈdɪsˌkaʊnt ˌreɪt/ 1. Banking and Finance.
a. A rate (rate n.1 6b) used for discounting bills of exchange and promissory notes. Cf. discount v. 3a.
ΘΚΠ
society > trade and finance > financial dealings > types of money-dealing > [noun] > use of bills of exchange > discounting > rate of discounting
bank rate1740
discount rate1827
1827 Times 1 Aug. 2/5 Such a scarcity of money would be felt, owing to the diminished amount of notes in circulation, that the market rate of interest would rise to the level of the discount rate.
1865 J. W. Gilbart Logic of Banking v. v. 319 When the discount rate rises to the Bank rate, the merchants send their bills for discount to the Bank of England.
1905 C. A. Conant Princ. Money & Banking II. v. iv. 223 A high discount rate is in itself the offer of a high rental price for the use of money or credit convertible into money.
1953 Amer. Econ. Rev. 43 31 The scarcity of funds threatened to push the ninety-day bill rate substantially above the discount rate.
2000 Atlanta Jrnl. & Constit. (Nexis) 28 Mar. 2 d The Treasury Department sold $8.5 billion in three-month bills at a discount rate of 5.720 percent.
b. The minimum interest rate set by the U.S. Federal Reserve (and some other national banks) for lending to other banks. Cf. base rate n. 2b.
ΘΚΠ
society > trade and finance > financial dealings > moneylending > [noun] > moneylending at interest > interest > rate of interest
prime rate1815
usage1822
mortgage rate1898
savings rate1904
saving rate1905
discount rate1913
base lending rate1933
prime lending rate1951
interest-rate1959
base rate1970
minimum lending rate1972
MLR1972
prime1973
bank rate1974
LIBOR1974
subprime1976
Euribor1997
1913 N.Y. Times 21 June 2/3 Senator Hitchcock..criticised the proposal to empower the Federal Reserve Board to exercise Government control over discount rates.
1940 Jrnl. Polit. Econ. 48 300 Borrowing..may be controlled by varying the discount rate with reference to open market rates.
1966 Encycl. N.Z. I. 149/2 The extent to which a bank can extend credit..is determined by the amount of cash it holds at the Reserve Bank and its ability to borrow at the Reserve Bank's discount rate.
2007 Wall St. Jrnl. 1 Sept. a3/2 On Aug. 17, the Fed cut its little-used discount rate, to 5.75% from 6.25%.
2. The rate for a certain quantity of a particular commodity, service, etc., when offered at a discount; a price reduced by means of a discount.
ΚΠ
1892 Commerc. & Financial Chron. 6 Aug. p. vi/2 (advt.) It is issued to Bankers and Brokers with their business cards lettered in gilt on the outside..at discount rates, according to quantity ordered.
1944 Billboard 23 Sept. 6/4 By shifting the Jack Berch Show to Blue, the sponsor would get a whack at the full-hour discount rate.
1978 Sunday Star (Toronto) 13 Aug. B11/3 (advt.) Wasaga Beach, 1, 2 & 3 bdrom. housekeeping cottages, discount rates for August.
2013 Ridgewood News (Bergen, New Jersey) (Nexis) 8 Feb. d2 Reduced ticket rates for senior citizens... The discount rate is available only online.
This is a new entry (OED Third Edition, December 2013; most recently modified version published online March 2022).
<
n.1827