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simple interest rates question... watch

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    hey,

    just a few questions i have and cant seem to find short simple answers!

    the bank of england has recently decided to hold interest rates at 0.5%.

    Now does this refer to the interest rates on loans it gives to other banks? what exactly does this refer to?

    and theres 2 types of interest rates right? loan interest rates and saving interest rates? so when u hear 'interest rates rising' which one does that refer to?

    also what is this quanititative easing the government did to help the economic crisis? did that just mean pumping money into the economy? and by pumping money into the economy, does that mean giving it directly to banks?? wouldnt they just keep that and use it for commercial gain rather than for the best interests of the country?

    cheers in advance if people can answer these q's
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    Hope I helped. All the best mate.
    • Thread Starter
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    no, u didnt help, becuase u deleted/edited whatever u wrote? lol

    can anyone help? ive been reseraching it but all the finance language make it hard to understand coz im new to it all
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    Lol, fail.
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    the rate you hear about in the press is the base rate which is the rate at which the BOE will lend to UK clearing banks for 3 months. a lot of lending and borrowing is fixed against this.
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    How and why is it different to the Feds 'target rate'
 
 
 
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