Qualified advisers answering your
Financial Questions
call 0800 092 1245

Bank of England calls for more power

A report by the Bank of England has highlighted the fact that the interest rate loan will not save the UK economy in the short to medium term and indeed will need to be complemented by other powers in the longer term. A review of the UK economy over the last decade has shown that the Bank of England would have had to push UK base rates to between 6% and 19% to control what was at the time an uncontrollable surge in property-based lending in the UK. So what extra powers will the Bank of England require?

At a time when the Conservative party is looking to give the Bank of England more power, if it is successful at the next general election, the Bank of England believes a series of surcharges are required to control excessive lending from UK banking institutions. The surcharges would be triggered in the event of periods of excessive lending and would effectively reduce the financial strength and lending capabilities of the UK banking sector as a whole. This would then allow the authorities to gain more control over the flow of finance in the UK and hopefully avoid the lending bubbles we have seen over the last 10 years.

Sounds simple, but is it really that easy?

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:

Latest News


Helpful new tax year facts that could affect you and your money

Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.

Read more

Useful Links

Popular Searches

Please Enter More Details

Enter More Details