Bank of England Interest Rate Control
Published / Last Updated on 16/05/2008
Bank of England Interest Rate Control
In a report in an industry newspaper, according to top UK lenders, the Bank of England no longer has any sway when it comes to product rate changes. Despite the Monetary Policy Committee reducing interest rates from 5.25 per cent to 5 per cent, lenders have not been quick off the blocks to pass on changes.
Our view
It would appear, given the current wholesale money market climate, that any changes to interest rates at the Bank of England will have little effect on what is being offered to the corporate or private borrower. It may therefore, not have the desired effect n stimulating the economy, although we suggest it will breed confidence.
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