Hunt ‘working on solution’ to ensure banks pass on interest rate rises to savers

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Chancellor Jeremy Hunt has said he is “working on a solution” to ensure banks act quicker to pass on interest rate rises to savers. “So shouldn’t he be much tougher on the banks and what is he going to do to stop this profiteering?” I raised that issue in no uncertain terms with the banks when I met them and I'm working on a solution because I think it is an issue that needs resolving Chancellor Jeremy Hunt Mr Hunt replied: “ is absolutely right, it is taking too long for the increases in interest rates to be passed on to savers, particularly with instant access accounts – the rates are more frequently being passed on to people who have fixed-term, fixed-notice accounts. “So can I join cross-party with and say she is absolutely right that so often when the base rate rises, lenders are very quick to raise interest rates on our constituents, and when they fall – and they surely will fall and hopefully very soon, possibly in the autumn, we’ll see – can make sure that those reductions are passed on as quickly as possible to our constituents?” Mr Hunt defended the Government’s record on supporting people, adding: “One thing that can definitely happen better than it is now is passing on increases in the base rates to savers.” The Bank of England last week hiked the base rate from 4.5% to 5%. Conservative MP Anna Firth noted the majority of the mortgage market is fixed rather than floating, adding: “Rising short-term interest rates will not necessarily result in falling inflation and we do need to look at other measures, such as making sure that interest rates are passed on to savers so they keep their money in the bank.” If more people are encouraged to save, that is technically counter-inflationary and is something to be encouraged Jeremy Hunt Conservative former minister Robin Walker also urged the Chancellor to “encourage the banks to pass on interest rates to savers”.