Interest rates left on hold a ‘welcome pause’ for UK banks

Interest rates left on hold a ‘welcome pause’ for UK banks

The Bank of England’s decision to leave interest rates on hold last week is a “welcome pause” for the high street banks, analysts said. Higher interest rates, which have increased rapidly to a post-financial crisis high of 5.25 per cent, have boosted banks by increasing their net interest margins— the difference between what they pay out and receive in interest payments. However, in the summer, major high street banks warned that their margins…