The base rate of interest used by BoE to influence the financial markets and hold monetary policy, is the REPO rate, which is the rate used by BoE to extend credits based on repo scheme (repurchasing agreement), that is BoE purchases from its counterparts various bank assets, while their number is limited and known in advance (i.e. government bonds, Pounds or Euro denominated bonds of certain banks etc.) on the condition to sell them back after a specified time-limit (in this case the committee determines a loan rate for two-weeks’ term). Therefore the BoE counterparts get the money they need, thus supporting the market liquidity.
The interest rate level is set up at the meetings of BoE Monetary policy committee (MPC). As a rule, the results of the voting are released to public at such a meeting after the MPC's meeting on the 2nd Wednesday of each month. It includes the number of votes for and against the adopted decision, explanations on behalf of those members who voted against it, their reasoning and the current interest rate which is acceptable in their opinion. The publication of the results is called “the minutes of the meeting”.
Effect of market
The decision of the discount rate change causes one of the strongest market responses. The discount rate rise should support the British Pound.