Monday, 2 February 2009

Passing on the rate cuts

Since the credit crunch began, interest rates on personal overdrafts have actually increased.

It is nice to see commercial banks responding to the low interest rate environment provided by the Monetary Policy Committee.

7 comments:

JPT said...

It shouldn't be allowed.
Seriously.

CityUnslicker said...

why does the bank set a rate. they have no control, so why bother?

The Economic Voice said...

That's because the MPC don't control LIBOR.

AntiCitizenOne said...

the MPC should also publish Tractor Production stats for the potempkin area.

Mark Wadsworth said...

CU, did you vote option 4 in the poll in the side bar?

Anonymous said...

Far from setting a minimum lending rate - they should have been setting a maximum loan to value rate all along.

Think about it; any LTV above 90% was ALWAYS going to spin markets out of control. It was never legislated for because it was assumed too daft; until it was actually common place.

AntiCitizenOne said...

Anonymous, far better for banks to have a supervised reserve ratio.

The average reserve ratio should rise with rising M4 and fall with a falling M4.