To be continued e The base interest rate is set by the central bank, upon which all other lending or savings interest rates are based. The increase(or decrease)in the base interest rates would increase(or decrease)the financing cost of a financial institution whether from the central bank or from the marketTo be continued  The base interest rate is set by the central bank, upon which all other lending or savings interest rates are based. The increase (or decrease) in the base interest rates would increase (or decrease) the financing cost of a financial institution, whether from the central bank or from the market. 10