Most UK businesses will borrow funds at a rate expressed as a percentage above the prevailing Bank of England Base Rate.

Lenders like to maximise their return and typically a small business (with annual sales up to £2m) may expect to pay Base Rate + 3%. The stronger the business the lower the rate & vice verca.

Base Rate history is important if only so a business can calculate what its interest burden may be should rates ever return to levels seen in 1989/90/91 when between 5th October 1989 & 8th October 1990 Base Rate was 15.0%.

Going back to 1996, base rate movements have been as follows:-

The last time Base Rate moved was on 5/3/09 with the current rate 0.50%

2009

• 5/3/09......0.50%
• 5/2/09......1.00%
• 8/1/09......1.50%

2008

• 4/12/08....2.00%
• 6/11/08....3.00%
• 8/10/08.....4.50%
• 10/4/08.....5.00%
• 7/2/08.......5.25%

2007

• 6/12/07....5.5%
• 5/7/07......5.75%
• 10/5/07.....5.5%
• 11/1/07.....5.25%

2006

• 9/11/06.....5.0%
• 3/8/06.....4.75%

2005

• 4/8/05.....4.5%

2004

• 5/8/04.....4.75%
• 10/6/04.....4.5%
• 6/5/04.....4.25%
• 5/2/04.....4.0%

2003

• 6/11/03.....3.75%
• 10/7/03.....3.5%
• 6/2/03.....3.75%

2002

• no changes

2001

• 8/11/01.....4.0%
• 4/10/01.....4.5%
• 18/9/01.....4.75%
• 2/8/01.....5.0%
• 10/5/01.....5.25%
• 5/4/01.....5.5%
• 8/2/01.....5.75%

2000

• 10/2/00.....6.0%
• 13/1/00.....5.75%

1999

• 4/11/99.....5.5%
• 18/9/99.....5.25%
• 10/6/99.....5.0%
• 8/4/99.....5.25%
• 4/2/99.....5.5%
• 7/1/99.....6.0%

1998

• 10/12/98.....6.25%
• 5/11/98.....6.75%
• 8/10/98.....5.25%
• 4/6/98.....7.5%

1997

• 6/11/97.....7.25%
• 7/8/97.....7.0%
• 19/7/97.....6.75%
• 6/6/97.....6.5%
• 6/5/97.....6.25%

1996

• 30/10/96.....6.0%
• 6/6/96.....5.75%
• 8/3/96.....6.0%
• 18/1/96.....6.25%