Lloyds explained that the BBR was “only one of a number of factors” that it considered when assessing its stance on interest rates.
A handful of lenders have responded to the Bank of England’s decision to drop interest rates by 0.25% today by making changes to tracker and variable rate deals, but only Santander, Virgin Money and Barclays have pledged to pass on the rate cut to SVR (Standard Variable Rate) customers.
This is despite Carney’s warning to banks that they “have no excuse for not passing on this rate cut” during a press conference this morning.
A Lloyds Banking Group spokesperson said: “The Bank of England base rate is only one of a number of factors that we take into account when reviewing interest rates.
“The 0.25% reduction will form part of the ongoing rate reviews across our product ranges. All variable rate products that track the Bank of England base rate will be reduced by 0.25% from September 2016.”
