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Glossary · Banking

Bank Rate

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By the Money Guide editorial team · Editorial responsibility: Kaiser Khan, Editorial Director · How we check facts

Definition: The interest rate set by the Bank of England's Monetary Policy Committee. It is the rate the Bank pays to commercial banks holding reserves with it.

Bank Rate influences the rates banks set on savings, mortgages and loans, but the pass-through is partial and slow. The MPC reviews it eight times a year. See the Bank's published schedule and minutes.

Primary source: bankofengland.co.uk

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