Gdicm Says Two Bank Rates?:
How difficult would it be to have two bank rates in Britain? One for lending and one for lending for mortgages only. The banks are the one’s borrowing obviously, and then they lend the money to individuals or companies at their interest rates, but the Bank of England lending rate is what the banks have to pay, and that dictates all the rates people pay.
Could the banks be trusted to police two rates and not lend to someone for business purposes at separate mortgage rates? It would take a lot of clever policing that is for sure. Certainly beyond our present dishonest money men and women I think. At present a healthy single economy rate would be between five and seven percent, meaning people were doing okay, and the government were getting more money for society’s needs. Maybe the rates need to be separated for a while to gain an economic standard of equality and allow people to have an affordable roof over their heads. The rate for mortgages would be the lesser.