Loans Rate still not at normal levels
Banks’ continued reluctance to lend to each other has seriously restricted the level at which personal loans, mortgages and other forms of credit can be offered, according to the BBC’s business editor Robert Peston.
The LIBOR (London Inter-Bank Offered Rate) is the average rate at which banks lend to one another at any given time. On Wednesday the ‘three-month sterling’ LIBOR stood at 6.21% – almost 2% higher than the 4.5% base rate – indicating that the Bank of England’s base rate cut, aimed at encouraging more and cheaper loans to consumers, hasn’t had the expected impact.
Related Resources:
