The Wall Street Journal Prime Rate is a benchmark interest rate used as a reference for pricing some loans and financial products. It is based on the lending rate at which banks extend credit to their most creditworthy customers, and it is typically set at 3% over the federal funds rate, which is the rate at which banks lend money to each other overnight.The Wall Street Journal Prime Rate is widely used as an index for adjustable rate loans, such as credit cards and home equity lines of credit, and is often used as a benchmark for other lending rates, including corporate and consumer loans.
