Theoretical Q about Bank Base Rate

robatwork

Looking through my mortgage offer, it mentions a backup plan about how interest is calculated "if the Bank of England cease publishing a BBR" or words to that effect.

While I realise this is just covering themselves, surely there is just about 0% chance the BofE won't publish a base rate - it would cause complete chaos......would it not?

Rob

Thrugelmir

robatwork wrote: »

While I realise this is just covering themselves, surely there is just about 0% chance the BofE won't publish a base rate - it would cause complete chaos......would it not?

Rob

Who knows the outcome of the European debt crisis?

Banking as we currently know it perhaps.

opinions4u

robatwork wrote: »

Looking through my mortgage offer, it mentions a backup plan about how interest is calculated "if the Bank of England cease publishing a BBR" or words to that effect.

While I realise this is just covering themselves, surely there is just about 0% chance the BofE won't publish a base rate - it would cause complete chaos......would it not?

Rob

Perhaps the Bank of England will cease to exist and be replaced by a new National Operations Bank (NOB) that will set ade rates. All the talk then would be about NOB base rate.

Or perhaps, as Tony Blair suggests, we will join the Euro and a rate set in Frankfurt will take precedence.

robatwork

The old lady won't give up without a fight!

grey_gym_sock

if we did join the euro (not likely in the short term, given the current crisis and the fact that blair is in favour of it), the BOE might well continue to set a base rate - it's just that it would set it by rubber-stamping the rate set by the ECB.