11.   Many corporate customers now have access to both traditional base rate related loan facilities as well as LIBOR related facilities.

12.   The announcement that bank base rates were to fall to nine per cent brought an immediate pledge by building societies to cut home loans.

13.   The Bank of England has cut the base rate by one per cent to eight per cent, its lowest level since June nineteen eighty-eight.

14.   Mr Edmonds said all companies would have to pay the same base rate so they could not complain of unfair competition.

15.   On top of the lending margin over base rate which the banks charged, a risk premium was added to cover the guarantee, making funds extremely expensive.

16.   It will also explain how market rates indirectly affect sterling interest rates generally, and specifically bank base rates.

17.   So long as the price is consistent with the current yield then nothing in relation to bank base rates need change.

18.   In the above example it is the Bank of England initiating the base rate change.

19.   Quite often it is the clearing banks which make the first move by announcing a base rate change before the Bank alters its intervention rates.

20.   The Bank in this case endorses the change by bringing its intervention rates in line with the new base rate.