The current prime rate as posted by the Wall Street Journal is at 3.25%.

This is the current prime rate today.  The current prime prime rate is effective as of  December 16, 2008.  The last reported rate change by for the prime rate as reported by the Wall Street Journal was on December 16, 2008 when the prime rate was reduced by 75 basis points or 75/100 of a percent. 

The Wall Street Journal prime rate is one of the most widely followed prime rate indices as well as the most widely quoted.  The prime rate itself is among the most widely used benchmark interest rates.  The prime rate is an index used for pricing other various short-term loan products offered by banks and other financial institutions.  The prime rate is often used for establishing the rates on home loans, credit cards and business loans.

The Wall Street Journal prime Rate is established by surveying the 10 largest U.S. banks.  The U.S. prime rate that is calculated by the Wall Street Journal is the average rate posted by at least 70% of the 10 largest U.S. banks.  The Wall Street Journal Prime Rate will change when 70% or more of the top 10 banks change their rate. 

The prime rate is the interest rate charged by banks to their most creditworthy customers.  Each bank is free to set their own prime rate though most U.S banks will have the same rate and adjust their prime rate at similar times.  Bank prime rate changes are fairly consistent because banks are reacting to the same market changes to interest rates and loan demand and want to offer loan products that are competitive in the market and competitive with their peers.  The prime rate does not change at regular intervals and banks are free to change their prime rate at anytime regardless of market conditions.

Bank prime rates are usually adjusted when short term rates move significantly for an extended period of time which will often coincide with movement in the Fed Funds Rate.  When the Federal Reserve announces a change in the Fed Funds target rate there will generally be an adjustment by most major banks in their prime rate shortly thereafter.

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