Financial Times FT.com

Bank urges lenders to boost credit

By Daniel Pimlott, Economics Reporter

Published: June 9 2009 11:51 | Last updated: June 9 2009 22:53

Britain’s lenders are failing to pass on cuts in interest rates to consumers, undermining efforts to get credit flowing around the economy again, according to data published on Tuesday by the Bank of England.

While banks and building societies have cut the interest rates at which they grant mortgages, they are far from matching the Bank’s reductions in official interest rates. Meanwhile, interest charged on personal loans, overdrafts and credit cards has risen.

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