24 Hour Loans glossary of financial terms

Bank of England base rate

The Bank of England base rate is a percentage rate that is used by the institution to control spending across the UK. This rate basically helps keep our economy stable and manages inflation and currency issues. The Bank of England base rate is set by a body called the Monetary Policy Committee (MPC) and is reviewed every month. The rate need not change with every review and will often stay at the same rate for months at a time.

This percentage rate is the backbone of the majority of financial products and of the sector as a whole ? it will dictate how much or how little we pay for borrowings or earn on our savings. The majority of financial companies adjust their rates for all types of financial products depending on how the base rate is doing. So, if the Bank of England base rate rises, then you may well find yourself paying more for your mortgage and earning more for your savings. If it drops, then your mortgage payments may fall and you may earn less for your savings.