BBA issues customer factsheet on base rates

The economic factors which govern high street bank interest rates are summarised in a new factsheet published by the British Bankers' Association following today's Bank of England decision on interest rates.

The factsheet explains the importance of the Bank of England base rate and summarises the other factors influencing how banks and other financial businesses set their interest rates.

BBA Chief Executive Angela Knight said: "This is a time of great uncertainty as we face a deepening economic downturn. The Bank of England is playing its part and the high street banks are doing theirs to protect their customers.

"Banks are determined to do everything they can to see their customers through the downturn - be they individual savers and borrowers or businesses. The rates at which the banks can borrow money are gradually but steadily coming down and where possible they are passing this on to their borrowers."

The factsheet can be downloaded from the British Bankers' Association website at bba.org.uk