Bank Services: Interest Rates
(asked on 7th October 2016) - View Source
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, whether he is taking steps to encourage banks to reduce interest rates inline with base rate reductions.
This question was answered on 14th October 2016
Alongside the Monetary Policy Committee’s decision to cut Bank Rate to 0.25%, the Chancellor on 4 August authorised the introduction of a new Term Funding Scheme.
The Term Funding Scheme will lend central bank reserves to banks and building societies for an extended period at rates close to Bank Rate, in order to ensure the low level of Bank Rate is passed onto borrowing rates faced by households and businesses.