bank of england base rate
It is used by the Bank of England primarily to control inflation by doing that it can stop prices of everyday things - food fuel clothing - from rising too high. The Bank of England has today increased the base rate from 01 to 025 in response to soaring inflation.
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It also helps cap wage growth which can also push inflation too high.
. The base rate sometimes known as the bank rate or base interest rate is the most important interest rate in the UK. The base rate which affects the costs of mortgages and the amount of interest paid on savings had been at an historic low since the start of the Covid-19 pandemic in March 2020.
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