Pressure on Banks to Cut Interest Rates

Pressure on Banks to Cut Interest Rates

Both Gordon Brown and Alastair Darling have signalled intent to Bankers with an expectation that they will cut rates based upon the huge cut in base rates by the Bank of England yesterday to 3.0%.

In simple terms, the Government believe they have taken huge steps to help certain lenders and it is now up to them to also follow suit and to pass cost savings to borrowers.

“We are determined to get banks to resume lending” Mr Brown said.

Today Mr Brown is meeting with leaders of the main banks thought to be Abbey, Barclays, HOS, HSBC, Lloyds TSB, Nationwide, Royal Bank of Scotland and Standard Chartered with a view to reinforcing the message to pass on the interest rate cut.

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