Tennesseans keeping an eye on the financial pulse of the state will note the latest announcement from Commissioner Greg Gonzales of the Tennessee Department of Financial Institutions.
Earlier today, the commissioner revealed that the maximum effective formula rate of interest stands firm at 12.50 percent annually. This determination leans on legislation which pegs the rate to a margin 4 percent above the week's average prime loan rate – a figure touching 8.50 percent as outlined by the Federal Reserve yesterday, as stated by the Department.
The prime rate's oscillations guide this interest rate ceiling, therefore, unless the Federal Reserve's figures shift, Tennesseans will see no change in the maximum interest rate, Gonzalez confirmed it stays as is until the Federal Reserve Bank announces a prime loan rate adjustment, but the legislation recognized as Chapter 464 from the Public Acts of 1983 necessitates the state's financial overseer to update Tennesseans weekly on such matters.
