What rate reflects the discount rate used by the Bank of England for loans to commercial banks?

The Repo Rate is the rate at which the Bank of England lends money to commercial banks, often through repurchase agreements, which involves the sale of government securities with an agreement to repurchase them at a later date. This rate is a crucial tool for monetary policy, as it directly influences the borrowing costs for banks and, consequently, implements broader economic factors such as inflation and monetary supply.

When the Bank of England changes the Repo Rate, it affects the interest rates that banks charge each other and the rates they offer to their customers. A lower Repo Rate encourages banks to borrow more from the central bank, which can stimulate lending activity to businesses and consumers. Conversely, a higher Repo Rate can slow down borrowing and spending.

The other terms, while related to banking and interest rates, do not specifically denote the rate at which the Bank of England lends to commercial banks. The Base Rate is a key interest rate used as a reference for lending but does not specifically pertain to the central bank's lending to commercial banks. The Interbank Rate refers to the rates banks charge each other for overnight loans, and the Reference Rate is a general term that can refer to various rates used in financial markets but does not specify the discount rate for loans from the central bank.