base rate

noun

1. the rate of pay per unit of time, as by the hour, or per piece, or for work performed at an established standard rate.

base rate

noun

1. the rate of interest used by individual commercial banks as a basis for their lending rates

2. informal,  the rate at which the Bank of England lends to the discount houses, which effectively controls the interest rates charged throughout the banking system

3. statistics the average number of times an event occurs divided by the average number of times on which it might occur

Word History and Origins

Origin of base rate¹

First recorded in 1920–25

Example Sentences

Analysts suggest imminent, further base rate cuts by the Bank of England appear unlikely, and uncertainty always foreshadows a Budget.

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The costs of financing swaps start with a base rate, perhaps 2 percentage points above an overnight borrowing benchmark.

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However, he thinks the latest inflation reading of 3.8% has effectively stopped the chance of seeing another base rate cut in 2025.

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"Savings rates are getting worse and any base rate reductions will spell further misery for savers," Ms Springall said.

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A lower base rate can reduce monthly mortgage costs for some homeowners but it also means a smaller return for savers.

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