BoB interest rate hikes: Who gains and who loses?

In April, the BoB increased the newly introduced Monetary Policy Rate (MoPR) by 51 basis points (0.51%) from 1.14% to 1.65%.

The latest increase is 50 basis points (0.5%) and takes the MoPR to 2.15%. The MoPR is the rate at which BoB lends money to commercial banks. It affects the prime lending rate which is the rate at which commercial banks charge consumers for borrowing money. The prime lending rate is higher than the MoPR to enable banks to cover their basic profit margin.