British banks to lower interest rates

LONDON, Nov. 7 (UPI) -- British banks began falling in line Friday to pass on a portion of the Bank of England's interest rate cut to their customers.

The moves at the various banks were not done without pressure from the government. Chancellor of the Exchequer Alistair Darling met with bank executives Friday to press the point, The Times of London reported.

Prime Minister Gordon Brown said Friday, "We are determined to get banks to resume lending," the Telegraph reported.

On Thursday, the day rates were cut, Lloyds TSB said it would pass the entire 1.5 percent rate cut on to customers. On Friday morning, Abbey said it would lower its standard variable rate. Bradford & Bingley also lowered rates Friday morning.

By the afternoon, Nationwide said it would lower rates 1.5 percent, while Halifax -- owned by HBOS -- agreed to a similar move. RBS then said it would do the same, The Times reported.

The Council of Mortgage Lenders said lenders also would pass along rate cuts of between 0.5 and 1.5 percentage points to customers.

"The individual decisions will be on the basis of assessing what they want for their savers as much as what they want for their borrowers," said CML Director General Michael Coogan.