The British supervisory agency, the Financial Conduct Authority (FCA), has warned that action will be taken against banks that reflect low or delayed monetary policy interest rates on depositors’ accounts.
In the statement made by the British supervisory agency, the Financial Management Authority (FCA), it was warned that British banks, which do not reflect the required interest increases on the deposit accounts where customers save their savings, may face “serious steps” in the coming months if they cannot provide valid reasons.
Despite the fact that banks have rapidly reflected the policy interest rates determined by the Bank of England on consumer and housing loans in recent months, there have been reports in the British press that this update was made quite late in the accounts of depositors.
In the statement, it was emphasized that banks will monitor how quickly the Bank of England’s policy interest rates reflect on consumers’ deposit accounts, and that a research on the subject and its results will be shared with the public soon.
The BoE increased its policy rate by 50 basis points from 4.50 percent to 5 percent after inflation remained sticky at 8.7 percent in May.
Markets expect the Bank of England to raise the policy rate from 5 percent to 5.25 percent, the highest level in the last 15 years.