So far Northern Rock has not managed to pass on the Bank of England’s quarter
per cent base rate cut to variable rate customers - those on 7.59%.
Whilst the emperor’s clothes of interest rates have become apparent to the wider public - that banks base their borrowing on LIBOR, not the BoE base rate - and in any case can vary their rates as they please, you’d be forgiven for thinking that a nationalised bank may have wanted to act in the interests of its customers.
But of course, indirectly it is, as in actuality it will act in the interest of the greater national
good - somewhat of a first for a nationalised industry but never mind. By acting in the wider interest it will include those poor borrowers, who through their taxes are subsidising themselves to get worse before they get better.
And of course borrowers should always remember that Northern Rock did, technically go out of business. If it had been your corner shop, it would now be gone; mind you, so would your tab for the Mail on Sunday.
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