Banks Refuse To Pass On Interest Rate Cuts Claiming They Are Not "Charities"

High Street banks have told Alistair Darling they will not pass on any further interest rate cuts to consumers and businesses.

The banks have warned the chancellor they are “not charities”. They said they could not afford further to reduce mortgage payments and interest rates to businesses if, as expected, the Bank of England continued to cut rates as the economy fell deeper into recession.

The tough line from the banks will anger taxpayers, coming just a month after the government injected £37 billion into Royal Bank of Scotland (RBS), HBOS and Lloyds TSB to protect them from the credit crunch. Northern Rock and Bradford & Bingley have already been rescued by the taxpayer.

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