Lloyds TSB pledges to pass rate cut on in full

by Richard Kilner

Story link: Lloyds TSB pledges to pass rate cut on in full

With the Bank of England due to make its latest interest rate decision known this Thursday Lloyds TSB has pre-empted it by reassuring its SME customers that, should a cut occur, it will be passed on in full.

Business customers with variable rate loans and overdrafts stand to benefit if the Monetary Policy Committee (MPC) does reduce rates, as is widely expected.

Lloyds TSB Commercial’s MD, John Maltby, has stated that the bank remains committed to supporting its customers through the difficult economic times.

The MPC is tipped to cut the rate by 50 basis points, helping borrowers but putting those reliant on savings into more difficulty.

The political dimension to the interest rate is also becoming a battleground between Gordon Brown and David Cameron.

The Prime Minister has pledged to help savers, who have been hit hard by record low interest rates, and the Leader of the Opposition recently unveiled plans to stop basic rate taxpayers paying tax on their savings, a proposal welcomed by the ABI.