Noun: discount rate
- The rate of interest set by the Federal Reserve that member banks are charged when they borrow money through the Federal Reserve System
"The Federal Reserve lowered the discount rate to stimulate economic growth"
- Interest on an annual basis deducted in advance on a loan
"The bank discount rate on the short-term loan was calculated upfront";
- discount, bank discount
Derived forms: discount rates
Type of: interest rate, rate of interest
Encyclopedia: Discount rate