Question to the HM Treasury:

To ask Her Majesty's Government what plans they have to investigate the socioeconomic consequences for consumers of banks charging negative real interest rates.

The Government believes that individuals, regardless of their background or income, should have access to useful and affordable financial products and services.

The independent Monetary Policy Committee (MPC) of the Bank of England sets the Bank Rate to meet the objectives set out in its remit of maintaining price stability and subject to this, supporting the economic policy of the Government, including its objectives for growth and employment. The MPC is sensitive to the effect of low interest rates on savers and does consider the effect monetary policy decisions have on all households.

Commercial banks make commercial judgements that influence the degree of pass-through from changes in Bank Rate into retail interest rates, with conditions in financial markets and in the banking sector also influencing interest rates paid on deposits or charged for lending. The Government does not seek to intervene in these commercial decisions.