Mortgage lenders, for example, tend to refer to the prime rate when setting interest rates for borrowers with home equity lines of credit. (smartasset.com)
Basically, this is the benchmark that banks use to determine how much to lend each other and it's an important factor in setting interest rates around the world. (lendedu.com)
The index is used widely around the globe to set the interest rate of various variable rate loans. (arborinvestmentplanner.com)