Base Rate

From Open Risk Manual


Base Rate. A basic rate of interest, on which the actual rate a bank charges on loans to its customers is calculated

Typically, the bank base rate is a reference rate set by a central bank. Banks that are regulated by a given central bank cannot lend below the base rate to their customers. The bank base rate is determined on an ongoing basis and represents the central bank's judgement of the price of short-term funds on their interbank market.


  • Bank Base Rate


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