Base Rate (Noun)
Meaning
The interest rate set by the Bank of England for lending to other banks.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The Bank of England reviews and adjusts the base rate every month to maintain economic stability and control inflation.
- Changes in the base rate significantly affect mortgage interest rates for millions of households in the United Kingdom.
- Economists predict a drop in the base rate in the upcoming year due to decreasing inflation and rising economic uncertainty.
- As a result of the low base rate, savings account holders received less interest on their deposits.
- Banks immediately reacted to the rise in base rate by increasing interest rates for borrowers across various types of loans.