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Base Interest Rate

Base interest rate or bank rate is the interest rate set by the Monetary Policy Committee (MPC) of the Bank of England (BoE). Base Rate determines the interest rate the BoE pay to commercial banks that hold money with them. The level of base interest rates then influences the interest rates those banks such as Barclays and NSBC charge people to borrow money or pay on their savings.

The interest rate set by the Bank of England, which influences borrowing and saving rates across the economy. This rate serves as the benchmark for banks when determining their own interest rates for loans and savings accounts.

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