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| What is Base Rate?
Base Rate is used in the UK and it's somewhat similar to the prime rate which is used in the US. The difference consists meanwhile in the US banks have a prime rate which is lower then the base rate for the most trusted people, in the UK banks don't have the same luxury.
To control the inflation the Bank of England manages the rate, and all the other banks follow it's lead. They calculate the interest rates according to the “above base rate”. Whenever the base rate is changed decreased or increased then to follow the difference the interest is changed also. | | | | |
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