Commenting, Robert Sinclair, Director of AMI, said: "The ‘steady as she goes' interest rate policy set by the Bank of England underlines the issues facing UK consumers. Banks are still constrained in their ability to lend to consumers and small businesses. While the quantitative easing programme is welcome, its results are not immediately visible and are not directly assisting public confidence. First time buyers and those on higher loan to value mortgages are still in very difficult positions and more needs to be done to assist those groups who will be crucial in ensuring we speed the economic recovery.
"A further cut in rates, indeed a move to negative rates as suggested by some commentators, might well force banks into lending more. This would assist in promoting the recovery that is showing early indications of arriving."
