Valedictory address at the Bank Economists’ Conference 2002, at Bangalore, December 29, 2002. BIS Review 82/2010  31  22. The base rate will prompt banks to make a better assessment of risk in pricing of loans.
It is expected to be more responsive to the stance of monetary policy which should facilitate movement in effective real lending rates consistent with the rates of return in the economy. 32  BIS Review 82/2010  Conclusions 23. Let me conclude now.