'Banks committed to economy'

Banks are committed to rebuilding the UK''s beleaguered economy, according to the British Bankers'' Association (BBA).

The BBA claims high street mortgage lenders have responded quickly to the monetary policy committee''s decision to slash base rates by 1.5 per cent last week.

According to the association inter-bank lending rates – known as the Libor – have fallen in line with base rate cuts ensuring mortgage providers will soon be able to pass those savings on to their customers.

Chief executive of the BBA Angela Knight says: "Banks are committed to doing their part to help rebuild the UK economy as well as ensuring we help and support all our customers - both lenders and savers."

She claims the industry backs the government''s wish for a strong banking sector in the UK.

In related news, the Daily Mail reports mortgage lenders have pulled "virtually all" of their competitively priced tracker products off the shelf following the base rate decision.

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