BANK OF ENGLAND INVITES BORROWING AT 10 PCT
The Bank of England said it had invited
those discount houses wishing to use borrowing facilities to do
so at 1430 GMT today at a rate of 10 pct for 14 days.
    This compares with the Bank's present band one dealing rate
of 10-3/8 pct.
    The Bank of England's announcement was quickly followed by
Barclays Bank and National Westminster Bank which announced a
half-point cut in their base rates to 10 pct from 10-1/2 pct.
    Dealers said the lowering in base rates had been widely
expected following yesterday's U.K. Budget in which Chancellor
of the Exchequer Nigel Lawson announced a three billion stg cut
in the Government's public sector borrowing target for 1987/88
to four billion stg.
    Many in the market had expected a full one point cut in
base rates today but some were not surprised by the
authorities' caution, dealers added.
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