This week’s Bank of England interest rates data confirmed that banks have so far taken advantage of the cuts in official interest rates to boost their profit margins by cutting savings rates more aggressively than borrowing rates. In theory, banks should be able to continue to widen, or at least preserve, their margins, even as interest rates get close to zero. However, this may prove hard to do in practice.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.