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

The Bank's base rate has an impact on the cost of borrowing for individuals and businesses, and also on returns on savings.

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“The key for us is to deliver premium returns over base rates, be they long rates or short rates,” he said.

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He also accused the DWP of relying increasingly on “adjustment factors” to increase the amount customers pay for water and electricity, instead of hiking the base rate.

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“Contrary to the government’s recently expressed view in favor of policy easing, “we do not see any room for a cut in the base rate yet,” ING analysts said in a note.

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

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