Banks told to pass on cut
Updated on 05 December 2008
The government is continuing to push banks and building societies to tow the line, to boost Britain's economic downturn.
There is increasing pressure on financial institutions to pass on yesterday's one per cent interest rate cut in full.
Britain's biggest lender HBOS is only reducing its rate by a quarter of a per cent.
Savers though are losing out too as they are likely to see their returns drop.
Sir Howard Davies
Jon Snow is joined by Sir Howard Davies, the director of the London School of Economics. Before that he was chairman of the Financial Services Authority and the deputy governor of the Bank of England.
