Despite accepting tens of billions of pounds in taxpayers\’ money to bail them out, they were still failing to lend to businesses and were maintaining historically low interest rates for savers, he said.

Lord help us, that\’s the City Minister speaking there.

Base rates are (for good reasons) low at the moment. Thus of course interest rates on offer to savers are low at the moment. The one follows the other as night follows day. You want to raise the rates on offer to savers? Raise the base rate…..seomthing we really would rather you didn\’t right now.

4 thoughts on “Snigger”

  1. Brian, follower of Deornoth

    Oh silly old you, Tim!

    Didn’t you know there’s a way to have low interest rates for borrowers and high interest rates for savers?

    All you have to do is whine loudly!

    The Government will then pass a law to make it all better.

  2. When the banking problem was ratcheting up abnormally high savings rates on offer were (to me at least) a sign that a bank was in dire need of capital.

    Banks now have more capital so don’t need to offer such juicy savings rates.

  3. Pingback: Snigger Leading just to Me

  4. I’ve just stumbled across a fine article on QE in the USA (which is fundamentally different to ours) that says even their version is pointless (it’s a massive fraud, according to Karl Denninger) because giving banks cash does not create loans.

    It’s the other way round actually – it’s the loans that create the deposits.

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