"As 5pc of the UK loan stock is equivalent to £80bn and the arrangement means banks receive a roughly 1pc reduction in costs for simply maintaining their loan levels, they will enjoy an initial £800m windfall before they inject a penny extra into the economy. The Bank and the Treasury, though, expect that gain to be passed on to customers through normal competitive pressures. "
Banks' £1bn windfall to boost economy - Telegraph
No, it will be passed to bankers as extra bonuses for high profits.
Who makes those contracts? Getting 80% of benefit by not doing anything won't encourage to take risks, possibly losing money to gain another 20%?
Nice bow ties though...
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