Official bank rate - Wikipedia Official bank rate The official bank rate ( also called the Bank of England base rate or BOEBR ) is the interest rate that the Bank of England charges Banks for secured overnight lending. It is the British Government 's key interest rate for enacting monetary policy. It is more analogous to the US discount rate than to the Federal funds rate. The security for the lending can be any of a list of eligible securities ( commonly Gilts ) and are transacted as overnight repurchase agreements. Changes are recommended by the Monetary Policy Committee and enacted by the Governor. History The official bank rate has existed in various forms since 1694 and has ranged from 0.25 % to 17 %. The name of this key interest rate has changed over the years. The current name `` Official Bank Rate '' was introduced in 2006 and replaced the previous title `` Repo Rate '' ( repo is short for repurchase agreement ) in 1997. Previously ( between 1981 and 1997 ) the title was `` Minimum Band 1 Dealing Rate '' and prior to that the `` Minimum Lending Rate ''. See also Bank rate Repo rate Implied repo rate References Jump up ^ `` Halifax : A to Z of Mortgages ''. Jump up ^ `` How Monetary Policy Works ''. ^ Jump up to : `` CHANGES IN BANK RATE, MINIMUM LENDING RATE, MINIMUM BAND 1 DEALING RATE, REPO RATE AND BANK RATE '' ( PDF ). This bank and insurance - related article is a stub. You can help Wikipedia by expanding it. Retrieved from `` https://en.wikipedia.org/w/index.php?title=Official_bank_rate&oldid=732954885 '' Categories : Interest rates Bank of England Bank stubs Talk About Wikipedia मराठी Norsk ਪੰਜਾਬੀ Svenska Edit links This page was last edited on 4 August 2016, at 11 : 13. Text is available under the Creative Commons Attribution - ShareAlike License ; additional terms may apply. By using this site, you agree to the Terms of Use and Privacy Policy. Wikipedia ® is a registered trademark of the Wikimedia Foundation, Inc., a non-profit organization. About Wikipedia

Question: bank of england base rate what does it mean
Answer: the interest rate that the Bank of England charges Banks for secured overnight lending