discount rate
noun [ C ]
ukus FINANCE, BANKING
the rate of interest that a country's central bank charges for lending money to other banks:
cut/lower/raise the discount rate
a cut/reduction/increase in the discount rate
The central bank slashed its official discount rate, at which it lends to commercial banks, to prevent the economy from sliding into recession.
FINANCE, ACCOUNTING
a rate of interest that you use to calculate the present value of an amount of money that you receive or pay in the future:
In terms of current market prices a 10% discount rate would imply a yield of 10.08% over 30 days.
FINANCE (also bill rate)
the rate by which the price of a bill of exchange is reduced if it is bought before its payment date
COMMERCE
a reduced priced that is offered to customers if they buy large quantities of products or services or if they pay a bill by an agreed date