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UK Banks Under Pressure to Pass Rate Hikes on Depositors

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UK Banks Under Pressure to Pass Rate Hikes on Depositors

The article discusses the UK regulator’s intention to intervene if banks fail to pass on rate hikes to depositors, indicating that this move could potentially weaken the economy further. However, the author acknowledges the challenges banks face in shifting rates to borrowers, considering loan maturity and the slow transition from cheaper loans to more expensive ones. Despite initial difficulties, the author suggests that the Bank of England has demonstrated its willingness to provide financial support whenever necessary.