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Press release

BSA comments on bank rate announcement

Contact: Neil Johnson
Date: 7 May 2009

Commenting on the decision by the Bank of England to keep the Bank Rate at 0.5%, Adrian Coles, Director-General of the BSA, said:

“The Bank’s interest rate decision is no surprise. While hard pressed savers should see interest rates maintained, this decision does nothing to help lenders to attract new deposits that could be used to fund mortgage lending.

“With the general economic outlook remaining bleak, we hope that the expansion of the quantitative easing programme will help to lessen the severity of the downturn.”

~Ends~

CONTACT: Neil Johnson
DIRECT LINE: 020 7520 5903
MOBILE: 07908 764549
EMAIL: neil.johnson@bsa.org.uk

Notes

The Building Societies Association (BSA) represents all 53 building societies in the United Kingdom. Building societies have total assets of £385 billion and, together with their subsidiaries, hold residential mortgages of almost £250 billion, more than 20% of the total outstanding in the UK. Societies hold over £240 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.
Photographs of Adrian Coles are available from the BSA press office, from the Association’s website at www.bsa.org.uk or Headlinemoney www.headlinemoney.co.uk