Interest rates

[retrochoir]

Why does the Bank of England interest rate affect the rate charged by the retail banks?

Is it to do with the Bank of England being the 'lender of last resort'? Can anyone explain this of suggest any good websites on this?

Thanks

[Buenchico]

Perhaps the Bank of England website would be a good place to start?
http://www.bankofengland.co.uk/monetarypolicy/ how.htm
(In particular, read the last 2 paragraphs)

Chris

[retrochoir]

Thanks for that.