The new measures announced today by the Treasury and the Bank of England “could not have come soon enough”, it has been claimed.
James Caldwell from the Fair Investment Company has hailed the package of support unveiled by chancellor Alistair Darling and the 0.5 per cent interest cut announced by the Bank’s monetary policy committee.
The banking system in the UK was “at breaking point”, he claimed, and added that the action taken by officials is a positive step.
It could offer beleaguered borrowers some debt help as confidence within the industry should be buoyed by the support, he argued.
“With an extra £200 billion available in the short term, on top of the £50 billion aimed at shoring up UK banks’ capital, lending between banks should free up,” Mr Caldwell commented.
However, it remains to be seen whether this happens in practice, he warned.
Meanwhile the Association of Mortgage Intermediaries also welcomed the “long-awaited” moves.
By Jamie Price