|
Media Centre
Press release
BSA COMMENTS ON BANK RATE CUT
Commenting on the announcement today by the Bank of England to cut the Bank Rate by 0.5 percentage points to 4.5%, Adrian Coles, Director-General of the BSA said: “The BSA welcomes the MPC’s decision to cut the Bank Rate by 0.5 percentage points to 4.5%. The outlook for the economy has deteriorated considerably in recent months, activity in the housing market has stalled, and house prices have fallen. “This reduction in Bank Rate will provide some support to the housing market because it will help those borrowers on variable rates. However, new fixed rate deals and those linked to money market rates will not necessarily fall because they are determined in the money markets rather than directly by the Bank Rate. “Although today’s news will clearly help those with repayment difficulties, borrowers who still think they might encounter problems repaying their mortgage should get in touch with their lender as soon as possible. At their building society, borrowers will find a sympathetic response and help in getting their finances sorted.” On the savings side, Mr. Coles said:- “Building societies have attracted record levels of savings since the disruptions in financial markets last year. In the twelve months to the end of August this year, building societies attracted £18.5billion in net savings, compared to £9.7 billion in the same period a year earlier. “These figures reflect the current heightened economic uncertainty and the recent volatility of stock prices, but also building societies' competitive rates of interest and reputation for safety and trust. Despite this cut in Bank Rate, these factors will continue to draw savings into building societies in coming months.” BSA has also welcomed the financial support package announced earlier today – further details can be found at:- http://www.bsa.org.uk/mediacentre/press/govn_support.htm ~Ends~ CONTACT: Neil Johnson
Notes
The Building Societies Association (BSA) represents all 59 building societies in the United Kingdom. Building societies have total assets of over £360 billion and, together with their subsidiaries, hold residential mortgages of £250 billion, more than 20% of the total outstanding in the UK. Societies hold about £235 billion of retail deposits, accounting for more than 20% of all such deposits in the UK. Building societies also account for about 37% of all cash ISA balances. Building societies employ over 51,500 full and part-time staff and operate through more than 2,000 branches. |
Latest Press Releases
BAILING OUT BANKS UNFAIR ON BUILDING SOCIETIES AND THEIR MEMBERS
BSA COMMENTS ON BANK RATE CUT
BUILDING SOCIETIES’ NET LENDING PICKS UP IN SEPTEMBER
Building society involvement in Icelandic banks tiny, says BSA
Society Matters
Spring 2008 Edition
Winter 2007 Edition
Autumn 2007 Edition
Newsbite
Level playing field on ISA transfers is needed
Turnout at building society AGMs climbs
Commission on Mutual and Co-operative Housing Begins Work
Have all the windfalls gone bad?
Building society statistics 2007
BSA Annual Conference round-up
|
- You are here
- >
- Home
- >
- Media Centre
- >
- Press Releases
- >
- BSA COMMENTS ON BANK RATE CUT
© 2006 The Building Societies Association (BSA) |
|