The Bank of
In a speech at
Base rates are important because they set the benchmark for borrowing by high street lenders from the central bank. In the late 1990s, they peaked at 7.5% before falling to 3.5% in 2003 and were 4.5% to 4.75% throughout most of 2005 and 2006.
Even in the depths of the recession there was an expectation among most businesses and homeowners that rates would go back to the long run average following the economy's full recovery.
The message from most, if not all, policymakers is that to maintain margins on commercial and home loans of about 2 percentage points, base rates need to remain at or below 3%.
Miles said the fear of another crash would encourage investors to favour
The level at which the Bank of
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