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Base Rate

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Base rate
British equivalent of the US prime rate.

Discount Rate
The interest rate at which the Federal Reserve makes short-term loans to member banks. The discount rate is an indicator of the direction in which the Federal Reserve is trying to push the broader economy. In general, a low interest rate indicates that it is trying to promote growth by making liquidity easily available, and a high interest rate shows that the Fed is concerned about inflationary pressures on the economy and trying to reduce the amount of money in the economy. Along with the sale of Treasury securities and the determining of the fed funds rate, setting the discount rate is one of the primary ways the Federal Reserve sets the monetary policy of the United States.


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The Bank of England has slashed the Base Rate in previous months to an all time low The reasoning behind this was to alleviate some pressure on current home owners and to help rejuvenate the financial economy hoping the banks would begin to lend money again The Bank of England has slashed the Base Rate in previous months to an all time low.
5 per cent below the base rate during the past two years.
Londoner Rory Brogan and his partner, Isabel, recently took out a base rate tracker mortgage with Barclays.
 
 
 
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