GBP Official Bank Rate 0.50% on 6 July 2009 at 7.00pm
bank rate
Definition
Interest rate at which a central bank will advance short term loans to commercial banks. Changes in bank rate are reflected in the prime lending rates offered by commercial banks (to their best customers), which in turn affect investments such as bank deposits, bond issues, mortgages. This term has largely been replaced by newer terms base-rate and prime rate.
prime lending rate
Definition
Interest rate charged by banks to their largest, most secure, and creditworthy customers on short-term loans. This rate is used as a guide for computing interest rates for other borrowers. See also London Interbank Offered Rate. Also called prime rate.
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