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Financial Terms

Base rate

This rate is used by commercial banks as a benchmark to set their own interest rates. Let's dive into the world of finance, where understanding the concept of base rate is crucial. To put it simply, the base rate is the lending rate determined by a country's central bank. Commercial banks then use this rate to determine their own interest rates. It's a key indicator of the overall economic health of a nation and plays a vital role in shaping financial decisions. So, it's safe to say that a thorough comprehension of base rate is essential for any financial enthusiast.
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