BASE RATE – JUST A CON?
Tuesday, September 2nd, 2008Today Base Rate is 5%. So what? LIBOR (the rate Banks are supposed to lend to each other) is 6.0% for one year and a one year Gilt earns 4.6% p.a. Drawings by the Banks under the emergency funding scheme are at 4.6% - so who gets or pays Base Rate?