Intro: Confused about the base rate? Don’t worry you aren’t alone. We asked the good people of Leeds about it.
Question: What do you know about the Bank of England base rate?
Nothing at all.
Not the foggiest, not a clue.
I don’t know.
I know that it affects mortgages and savings and that it can fluctuate.
I think it’s set by a committee.
Other institutions set their lending rates based on that rate.
Answer: The base rate is the interest rate at which the Bank of England (BoE) lends money to other banks. If the BoE base rate changes, banks might change the interest rates on mortgage and savings accounts. As a result, your mortgage and savings rates may go up or down in line with the change.
Question: What’s the highest the base rate has ever been?
Maybe at a guess five or six percent?
No idea…ten … fifteen?
Is it five percent?
Maybe around four percent?
In 1989 probably around 15 percent.
Highest it’s ever been? I’ll guess 17 percent.
Answer: In 1979, the base rate was a whopping 17%. Ouch!
Outro: Thanks Leeds, you were awesome.