Lloyds TSB: Rate cut may not be enough

www.moneynews.co.uk > Banking > Lloyds TSB: Rate cut may not be enough

Lloyds TSB: Rate cut may not be enough

Fri 6th Feb 2009

Lloyds TSB has called on the Bank of England to begin looking into alternative courses of action as it claims that yesterday's base rate cut may not be enough.

Trevor Williams, an analyst for the bank, said that the economic woes which triggered the base rate decision "will not disappear overnight".

He added: "[The] cut means that the UK needs to be ready to face a period where the ability of base rates to be used as a lever on the economy is almost entirely diminished.

"So now is definitely the time to discuss what other tools might be used to revive the economy."

Economic analysts from the price comparison website fairinvestment.co.uk said that the government needed to put more pressure on banks and building societies to pass on the interest rate cuts to businesses and individual borrowers "when they need it most".

Click here for more banking news

Related News : Banking
	Young people 'should be taught to save'
	Families 'should plan for their children's future
	Switching bank accounts 'not as easy as banks portray'
	Brits facing finance difficulties 'should talk to their bank'
	Brits 'should utilise Isa allowances'
	Brits advised on investment options
	Children 'should be given bank accounts at 16'
	Falling inflation 'could help Brits save'
	Money worries 'are mounting for many'
	Contactless payment 'is secure and convenient'

Related News : Loans
	Equity releasing 'helping Brits service debts'
	Younger Brits 'interested in equity release'
	Equity release 'can improve quality of life'
	Equity release 'could help older Brits manage their finances'
	Payday loans at Christmas 'could be a bad idea'
	Brits advised against Christmas borrowing
	UK firms 'have lost faith in mainstream lenders'
	Brits 'should consider loans carefully'
	Pay day loans 'can leave borrowers in a tricky situation'
	Unsecured loans growth in UK reported

Related News : LloydsTSB
	Lloyds TSB increases interest rates for its Young Saver account
	'New' universities contribute to higher mortgage rates
	Property prices rise across London and UK, studies show
	Lloyds' decision to leave PPI row supported by uSwitch
	Lloyds TSB fixed rate mortgage 'offers choice'
	Savings accounts provider Lloyds TSB launches social media scheme
	Savings account provider Lloyds TSB highlights Scottish recovery
	Lloyds buy to let mortgage announcement 'is restrictive'
	Savings accounts provider Lloyds TSB supports increased use of fivers
	Lloyds TSB savings accounts 'not impressing consumers'