Banks 'taking too long to pass on base rate increases'

02 August 2007
The banks are taking too long to pass on to savers the increases in the base rates after they have been made, it has been reported.

According to, 47 per cent of providers have not yet implemented rate hikes in the wake of the Bank's decisions.

When money institutions did incorporate changes, they passed on less than a quarter of a percentage point and it took 21 days for it to happen.

Kevin Mountford, head of savings and current accounts for the firm, criticised the banks' actions.

"The delaying tactic is incredibly sneaky - by holding off the rate change, providers are avoiding paying out a whopping £6 million per day in interest," he said.

On the first Thursday of the initial week of the month, the monetary policy committee convenes to discuss implementing a change to the base rate.

Last month, it decided to hike it to 5.75 per cent.

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