The Bank of England At 2%

The Bank of England have dropped the bank lending rate to just 2% in the hope that this will kick start the economy and the banks will pass this lower rate on to mortgage holders, thereby saving monthly expenditure for families, giving them more cash to spend in the shops.

It would already appear that this drop in rates will not infact be passed on to some mortgage holders for various reasons eg. fixed rate mortgages and other terms and conditions, which in real terms means that the banks will benefit mostly from this lower interest rate.

It would therefore, I presume, mean that banks will be able to pay the Government (the tax payer) back more quickly - some banks have been leans Billions of tax payers money to stop them from going under.

Wouldn't it be nice if the Banks were INSTRUCTED by the Government (tax payer) to lower their interest rates to mortgage holders and borrowers alike, this would surely help kick start the economy immediately. Surely the Government has the clout to be able to enforce such measures,otherwise, why lend money to keep these banks going, if it was not for the common good of the British people.