lending interest rate

Britain has doubled bank lending interest rates in the last 18 months, to 15 percent, in an effort to curb inflation.

Borrowing was rife among those of middle and upper income, and the lending interest rate was higher than in history.

Intermediation costs (financial institutions' operating costs) must be paid from the bank's margin between borrowing (deposit) and lending interest rates.

As banks gain increased lending confidence, the interbank lending interest rates (the rates at which the banks lend to each other on a short term basis) should decrease, further facilitating lending.