Base Rate

The base rate, sometimes referred to as the 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 high street banks' base rate changes following the Bank of England's signals through its daily money market operations.

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

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See also: Financial Services, Mortgages