Bank Rate Must Be Greater Than Inflation
TREAT will not allow the Bank Rate to be less than the Inflation Rate, although in reality, this can happen.
- Determine the discount rate your S.I.R. calculations should be using.
- If you are working with a Program, you should be using the discount rate specified by the Program.
- If the discount rate is 3%, set the difference between the Inflation Rate and Bank Rate to be 3%, i.e. make one 6% and the other 3% or 3% and 0%.