The six largest financial firms in the country, when asked, were unable to confirm they would pass on last week’s rate rise of 0.25 percentage points. Instead they saidSince December 2021 the base rate has increased from 0.1 per cent to 4.25 per cent, whereas the average easy-access savings account has only moved from 0.2 per cent to 1.85 per cent.
“This is a much better outcome for the banks than for savers. The problem comes as they know they don’t have to treat customers fairly to retain business. One way of forcing a change is for customers to move their money as banks would have to fight harder to raise the funds they need.” The Bank of England operates a Reserve Account and most banks have one of these. The Bank will pay the base rate on this, meaningas the Bank of England pays a more favourable rate than banks do for their clients.
Loans Loans Latest News, Loans Loans Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Hedge funds scale back bets against Scottish Mortgage\n\t\t\tExpert insights, analysis and smart data help you cut through the noise to spot trends,\n\t\t\trisks and opportunities.\n\t\t\n\t\tJoin over 300,000 Finance professionals who already subscribe to the FT. Not sure it will do the full round trip again but here's a reminder of it's 1999-2009 record
Source: FT - 🏆 113. / 51 Read more »