Shelter Scotland response to interest rate cut
8 January 2009
In response to the latest interest rate cut of one and a half percent, Graeme Brown, Director of Shelter Scotland, the housing and homelessness charity, said: "This is the fourth interest rate cut in as many months, and already lenders are saying they can't pass on the reduction to hard-pressed borrowers.
"First they argued that Libor, the inter-bank lending rate, was too high. Now they claim not passing on the rate helps savers, despite some banks offering saving rates as low as 0.1 per cent.
"The Bank of England recognises the need to relieve the pressure on homeowners and the economy. Now it's up to lenders to do the same, while also freeing-up mortgage lending".
