Banks will not pass on rate cuts

HSBC has been accused of ‘profiteering’ after a senior executive said it was unlikely to pass on the full interest rate cuts expected when the Bank of England’s monetary policy committee meet this week. Meanwhile Abbey has announced today that it is raising its tracker rate by 0.5 per cent, even though the Bank of England is expected to cut rates by at least the same amount. The remarks have been seized on by Lib-Dem spokesman Vince Cable who said that the whole banking industry which ‘owes so much to the taxpayers for their survival’ would be on thin ice if found to be profiteering from its customers.