Base Rate

Business, Legal & Accounting Glossary

Definition: Base Rate


Quick Summary of Base Rate


The base rate is the lowest rate of interest that a bank will charge. However loans are normally offered at a rate of x% above base rate depending on the risk profile of the borrower.

The base rate normally matches the Bankof England base rate, which is reviewed on a monthly basis by the Bank’s Monetary Policy Committee. The base rate is set at a level to meet the Government’s inflation target.



Full Definition of Base Rate


Base rate, sometimes referred to as repo rate, is the minimum rate at which banks are prepared to lend money – it acts as the benchmark for other interest rates, including personal loans and mortgages.

The central bank moves base rates by changing the dealing rates at which it buys bills from the discount houses.


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Base Rate. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. December 05, 2020 https://payrollheaven.com/define/base-rate/.
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Base Rate. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/base-rate/ (accessed: December 05, 2020).
American Psychological Association (APA):
Base Rate. PayrollHeaven.com. Retrieved December 05, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/base-rate/

Definition Sources


Definitions for Base Rate are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 26th April, 2020 | 1 Views.