The pound had also weakened slightly after the Bank of England on Thursday cut its base interest rate to 5.50%, from 5.75%, on growing signs that the U.K. economy was slowing.
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.
Although the base rate of interest is 4.5%, most credit cards charge upwards of 40%, plus an annual fee.
Unfortunately, the larger the monetary base, the lower the interest rate required for a non-inflationary outcome.
All of those other risk factors are added to the fundamental base of all valuation, the interest rate.
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Last month, Bank of Ireland was criticised for increasing the interest rate on its Base Rate Tracker mortgages, despite the official rate remaining at 0.5%.
Only when one starts with the proper interest rate as the base and then goes on to take various risk factors into account, can investments be properly valued.
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It is just a matter of adjusting the monetary base according to a gold target, rather than a Keynesian interest rate target.
Australia's central bank has been pursuing a policy of interest rate rises in recent months, and increased base rates by a quarter of a percentage point to 6.25% in November in a bid to keep a lid on inflation.
Senior loans pay interest at rates that are determined periodically by reference to a base lending rate, primarily LIBOR, plus a premium.
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Interest rates are quite low but so is inflation: in real terms the base rate is around 3%.
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With Italian interest rates at all-time highs and near breaking point the ECB has dropped its base rate as a signal that it will come to the rescue of the European economy.
"Until the base rate starts to increase, there is no prospect of savers seeing any meaningful increases on the paltry interest returns they are currently receiving, " said Andrew Hagger, of Moneynet.
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