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Major banks pass on huge 1.5% base rate cut
HBOS, Nationwide, Northern Rock, Royal Bank of Scotland and Bradford & Bingley all passed on yesterday’s Bank of England's 1.5% rate cut in full to their customer’s on variable rate mortgages.
Abbey and Lloyds TSB were the first to reduce their standard variable on the same day as the announcement on Thursday 7th November.
UK Chancellor Alistair Darling met immediately with the Banks chiefs encouraging them to act fast by reducing their rates to avert people's fears of a UK recession and help fuel the UK economy.
LIBOR - the "London Interbank Offered Rate" also fell in a similar way to 4.5 percent from it’s previous position of 5.56 percent, however finance critics say that for banks to start lending again to each other LIBOR needs to fall closer to the 3% Base Rate.
