Banks set new World Record in passing on lower Interest Rates
- BillClay
- 23 hours ago
- 1 min read
0.4 Nanoseconds, that is a brand-new record. As soon as The Bank of England Monetary Policy Committee made the announcement, customers were issued semi-apologetic letters saying that their nice bank was forced to reduce their saving rate and there was nothing they could do about it. E-mails were hitting inboxes before people had reached the full stop of the MPC’s statement.
In a stark contrast to when the interest rate rises, the time taken for applying this to savings accounts usually has some sort of period of extended lag, probably due to time zones or stock market opening times or maybe professional analysts taking a broad, careful look at the overall market environment…. Sorry, a little bit of sick came up when I wrote that.
At the time of going to press, the banks were still considering how to pass this reduction on to mortgage customers and will see how best to handle this very soon. Hold tight.