The Bank of England is seen in the City of London in London, Britain August 4, 2016. REUTERS/Neil Hall
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The Bank of England's first rate cut since 2009 looks unlikely to be passed in full to borrowers, despite the BoE being ready to lend banks as much as 100 billion pounds ($130 billion) to ensure it happens.Governor Mark Carney said lenders had "no excuse" not to pass on August's quarter-point cut in interest rates to 0.25 percent, as the TFS would neutralise the negative impact of the rate cut on bank profits by providing lenders with cheap loans.Britain's biggest mortgage lender, Lloyds Banking Group, is holding off cutting its main rate, while First Direct, part of HSBC, reduced the interest rate it pays out on one of its savings accounts by 0.4 percentage points.As a result, interest rates on new two-year fixed-rate mortgages – Britain's most popular type of home finance – were likely to drop by less than 25 basis points, Gordon said, as banks' sought to preserve profits and priced in a higher risk of default as the economic outlook darkened.In just over a year, it provided over 40 billion pounds of finance to banks and building societies.
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