The base rate refers to the benchmark interest rate set by the Bank of England.
It serves as a reference point for determining interest rates on various financial products, such as savings accounts, within the UK.
Base Rate Example:
The latest Bank of England base rate is: 5.00%. This is an increase of 0.50% on the previous rate of 4.50%, and was announced by the Bank of England (BoE) on 22 June 2023.
It’s important to note that the base rate can change regularly, and when it does, it impacts the interest rates offered on financial products across the financial services sector such as savings accounts and mortgages.