Free market and Official Bank Rate: Difference between pages

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''Economics.''
1. ''UK.''


An economy where resources are allocated by the market by means of the market mechanism.
The official reference interest rate for the UK determined by the Bank of England's Monetary Policy Committee (MPC).
 
The Official Bank Rate is the rate used for certain key transactions between the Bank of England ('the Bank') and financial institutions.
 
It is designed to have the effect of determining the level of near risk-free interest rates throughout the UK financial sector.
 
 
It is used by many financial institutions when setting interest rates for certain of their products.
 
 
The Official Bank Rate is often known - externally to the Bank - as the 'Bank of England Base Rate' (BBR).
 
Within the Bank of England, it is often abbreviated to 'the Bank Rate'.
 
 
2.  ''International.''
 
Similar interest rates in other jurisdictions.




== See also ==
== See also ==
* [[Four freedoms]]
* [[Bank of England]]
* [[Fully planned economy]]
* [[Bank Rate]]
* [[Market mechanism]]
* [[Base rate]]
* [[Mixed economy]]
* [[Inflation target]]
* [[Jurisdiction]]
* [[Monetary Policy Committee]]  (MPC)
* [[MLR]]
* [[Reference rate]]
* [[Term Funding Scheme]]
 
 
==External link==
*[https://www.bankofengland.co.uk/monetary-policy/the-interest-rate-bank-rate The Bank Rate - Bank of England]


[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Long_term_funding]]
[[Category:Long_term_funding]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Cash_management]]
[[Category:Financial_products_and_markets]]
[[Category:Liquidity_management]]

Latest revision as of 00:26, 27 January 2022

1. UK.

The official reference interest rate for the UK determined by the Bank of England's Monetary Policy Committee (MPC).

The Official Bank Rate is the rate used for certain key transactions between the Bank of England ('the Bank') and financial institutions.

It is designed to have the effect of determining the level of near risk-free interest rates throughout the UK financial sector.


It is used by many financial institutions when setting interest rates for certain of their products.


The Official Bank Rate is often known - externally to the Bank - as the 'Bank of England Base Rate' (BBR).

Within the Bank of England, it is often abbreviated to 'the Bank Rate'.


2. International.

Similar interest rates in other jurisdictions.


See also


External link