British Bank Loan Kate Raised to 8%
LONDON, Fob. 27 (AP)ÛÓThe Bank of England raised the British bank rate today in an apparent bid to clamp down on consumer spending and enforce the government's credit-squeeze program.</br></br>The rate, which Is the basis for all the countryÛªs Interest rates, was moved forward to 8 per centÛÓan increase of one per cent. The move puts the bank rate at the same level established during the crisis of 1967 when the pound was devalued.</br></br>In effect-the rate is the equivalent of the discount rate in the United States, except that it is set by the Bank of England instead of the Federal Reserve Board. All the countryÛªs interest rates are set according to it.</br></br>The increase came as a shock to financiers in London who viewed it as a savage move to tighten the nationÛªs economy.	.	v	'</br></br>The decision was taken because figures, due to be published Friday, show that the big banks increased lending in the four weeks to mid-February instead of gradually decreasing as the government planned, A target reduction of $360 million by mid-March