And in any case the ultra-low central-bank base rate will eventually have to rise, pushing up borrowing costs.
Despite the Bank of England base rate remaining at 0.5%, Bank of Ireland is almost doubling its tracker rate.
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The Bank kept its base rate at 5% this week, but it will be looking to cut before long.
The Bank cut the base Selic rate last month, citing a slowdown in demand and concerns that the advanced economies might slow even more, easing export demand and commodity prices.
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The bank left the base rate at its all-time low of 0.5% earlier this month, but two of the nine members of its monetary-policy committee backed a quarter-point rise, according to minutes published this week.
But, according to George Buckley of Deutsche Bank, the base rate would have to rise from its current 38-year low of 4% to around 7.5% to precipitate a full-scale bust, and he is expecting rates to rise to no more than 5%.
Before the financial crisis in 2007 and 2008, Libor would have been, on average, about 0.15 percentage points above the Bank of England's base rate (also known as bank rate), Mr Boulger said.
The asset expansion has produced a sharp rise in bank reserves, and hence the monetary base, which is composed of bank reserves and currency outside the banking system.
In December 2008, the Bank of England cut base interest rates by one percentage point.
The most common measure of the monetary base is bank reserves plus currency outside the banking system.
The idea of a quarter or more of a big bank's deposit base being wiped out is politically unthinkable.
The move would double the central bank's monetary base over two years.
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It is almost three years to the day since Bank slashed the official base rate - by 1.5 percentage points - in response to the banking crisis.
The Korean central bank's move came after a similar move in Brazil, where the central bank cut its Selic base interest rate by a quarter of a percentage point to 7.25% Wednesday.
Meanwhile, Government-owned Northern Rock cut its Standard Variable Rate by 0.1% on Monday, its first move after the Bank of England cut base rates by 0.25% 11 days ago, and more than a week after the chancellor said banks should pass on interest rate cuts to homeowners.
QE1 added greatly to bank reserves, which bloated the traditional measure of the monetary base, but most of those bank reserves have not yet led to rapid monetary expansion that would be inflationary.
In recent weeks, bank reserves, the monetary base and other monetary aggregates, have grown very rapidly.
This fast-growing midwestern bank chain, with a base in Cincinnati, was a terrific investment in the 1980s and 1990s.
It restores bank reserves and the monetary base to the levels that they were before the bonds were sold.
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More than one million historical objects reflecting Cumbria's history have been moved from Carlisle Castle to a purpose-built base at Petteril Bank.
He added that the organisation had not counted the donations, but said they had almost filled three rooms at the charity's base on Tan Bank.
When the Bank of England dropped its base rate to 0.5%, it took the wind out of the sails of anyone looking for a decent rate of interest.
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Floating-rate mortgages last year reduced many borrowers' payment burden as the Bank of England dropped its base rate to 0.5% and lenders adjusted their standard variable rates downward in response.
The Bank of England's base rate is still at a record low of 0.5% and many variable rate savings polices on offer from banks and building societies offer less than 1% to their savers.
Ray Boulger, at mortgage brokers John Charcol, estimated that in the past 10 years, at any one time only about 250, 000 UK residential mortgages would have had a home loan linked to the Libor rate, rather than the Bank of England's base rate.
First, neither excess reserves nor the monetary base (currency plus bank reserves) are money.
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While Japan's banking system remains crippled, faster growth in the monetary base does not boost bank lending.
The Fed faces a very dangerous tradeoff: risk higher inflation by expanding the monetary base (currency plus bank reserves) in a vain attempt to lower unemployment.
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Mr. Moebs also said new charges by the bank will likely hit a broader portion of Bank of America's customer base than the debit fees it abandoned.
Now, every morning, an IBM supercomputer at the bank's New York trading base runs its portfolio through Monte Carlo simulations of the sort developed to simulate nuclear explosions.
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