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Why does the Bank of England change the 'base' interest rate?
  • a)
    To target economic growth.
  • b)
    To target unemployment rate.
  • c)
    To target inflation rate.
  • d)
    To encourage borrowing.
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Why does the Bank of England change the 'base' interest rate?a)To targ...
The Bank of England changes the 'base' interest rate to target the government's inflation rate, aiming to keep it around 2% +/- 1. This is a key tool to control inflation in the economy.
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Why does the Bank of England change the 'base' interest rate?a)To target economic growth.b)To target unemployment rate.c)To target inflation rate.d)To encourage borrowing.Correct answer is option 'C'. Can you explain this answer?
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