DanAronG
Joined: 17 Oct 2008
Posts: 103
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| Posted: Wed Mar 11, 2009 3:18 pm Post subject: CML states concerns over low interest rates |
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The Council of Mortgage Lenders (CML) has commented on the recent bout of rate cuts stating that it has serious concerns over the effects these cuts are having on the flow of savings.
With the wholesale funding market still facing difficulties, banks are somewhat reliant on savings in order to generate loans. The recent succession of rate cuts have led to the interest being paid on savings offering a very low return to savers and has caused a massive flow of savings to be redirected to National Savings & Investments (NS&I) with billions of pounds previously held in bank accounts now invested there.
This, the CML claim, is further restricting mortgage lending and the volatility of the flow of savings is a potential cause of more instability in the mortgage market. |
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