PPI Claim News - 24/2/2010
Credit Card Charges: Banking strains keeping rate low, says BoE
The prolonged strain on the banking system could see a further freeze on interest rates and the return of quantitative easing (QE), a leading financial figure has revealed.
Paul Tucker, financial stability officer at the Bank of England (BoE), said the bank may be forced to keep the base rate at a historic low in order to counteract the "persistent rise" in the interest charged by commercial lenders, reports the Daily Mail.
Mr Tucker said he fears that if the base rate was increased high street banks may react by upping the charges on their personal loans in order to recoup the loss from their repayments.
His comments come after the BoE's governor Mervyn King hinted that its QE programme could be kick-started as the value of the pound continues to fall.
However, although the base rate may be at an all-time low, credit card charges and interest rates on overdraft repayments are certainly not.
Financial advice website moneynet.co.uk recently found that the average repayment for an overdraft loan is now 10 per cent higher on average than it was two years ago.
For help making a PPI Claim, Loan claim, PPI reclaim, or a credit card charges claim then call Belmont on 0845 526 0000 or fill in the Quick Claim box to be sent a PPI Claim form, Loan Claim form, PPI reclaim form or credit card charges form.
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