Business, Legal & Accounting Glossary
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.
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.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
Definitions for Base Rate are sourced/syndicated and enhanced from:
This glossary post was last updated: 26th April, 2020 | 1 Views.