FINANCIAL SERVICES companies took a leaf out of the book of oil companies yesterday by almost immediately announcing rises to interest rates applied to mortgages equal to the 0.25% hike in the base rate, while at the same time delaying raising interest paid to savers.
Abbey was quickest of the block, announcing it was passing on the full 25 basis points rise within two minutes of the Bank of England’s announcement, The Times notes. Continuing the indignant tone, the paper says savers have been “left in the cold”, particularly since most have yet to benefit from November’s base rate increase, let alone yesterday’s. The Daily Telegraph states house prices are to blame for yesterday’s news, and that the statements accompanying the Bank’s decision are due to a shift in focus from simply limiting general inflation to becoming more active in targeting...
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