Shawbrook Base Rate

All Shawbrook Base Rate FAQ's

What is Shawbrook Base Rate?

It is a reference rate that we use to help to price our customer products. It helps us to pass on changes in the market cost of funding for banks where appropriate.

Why do you not simply use Bank of England Bank Rate?

The Bank of England’s Official Bank Rate, sometimes known as Bank of England Bank Rate (“BBR”), is a policy tool used by the Bank of England to influence the macro economy. It has taken several different forms, which may be more or less representative of the market cost of funds for banks at different periods in history. A description of this can be found here.

For this reason, we do not directly link our products to BBR, but intend to pass on changes that occur in BBR as long as it is representative of changes in banks’ market funding costs.

Will Shawbrook Base Rate move at the same time as Bank of England Bank Rate?

Shawbrook Base Rate will closely track changes in BBR, except in exceptional circumstances where there is a disconnect between BBR and banks’ market funding costs.