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Bank of England - Earlier and Faster rate rises

Graham_Devon · 2018-02-08 12:53:34

Quite a significant release from the BOE. Especially the "greater extent" part. However, under no illusion that as they have said this, they are unlikely to actually do it! http://www.bbc.co.uk/news/business-42986729

Comments

Thrugelmir Posts: 89,546 Forumite

10 February 2018 at 10:17AM edited 10 February 2018 at 10:22AM

GreatApe wrote: »

Retail deposits are the biggest funding source for banks and most retail deposits earn 0% as most people don't shop for the highest interest paying accounts

Securitisation (RMBS) is the primary source. Banks have little need of £2,000 from Joe Bloggs. Expensive to service small accounts.

Likewise BOE pumped cheap money in at 0.5%. Though this scheme has ended. Lenders will shortly need to start repaying these funds.

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