Meaning of “floating rate” in the English Dictionary

business-english dictionary

"floating rate" in Business English

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floating ratenoun [ C ]

uk us also adjustable rate, also variable rate

FINANCE an interest rate that can change over a period of time:

Some investors prefer floating rate bonds over the fixed rates, as interest rates are not predicted to change in the near future.

ECONOMICS →  floating exchange rate

(Definition of “floating rate” from the Cambridge Business English Dictionary © Cambridge University Press)