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Surely most financial institutions should be able to set their own interest rates irrespective of the BoE.
They've probably got enough assets/cash to fund their own lending rather than going cap in hand to the BoE...
Hmmmmmmmmm. -
Some economists are forecasting a half point rise in May. There is now an increasing likelihood of interest rates hitting 6% now especially as the RPI is now 4.8% and risingOriginally posted by Diestl
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Most money they lend doesn't physically exist. The banks are forced to use BOE rates becuase they act of borrower of last resort.Originally posted by ChurchillSurely most financial institutions should be able to set their own interest rates irrespective of the BoE.
They've probably got enough assets/cash to fund their own lending rather than going cap in hand to the BoE...
Hmmmmmmmmm.
Conversely, If every saver withdrew their savings from the system in the same day the banks would collapse.I remember the good old days of this site when people used to moan about serious contractor related issues like house prices and immigration. How times have changed!?Comment
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