The Bank of England said it had invitedthose 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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