A surge in consumer lending means British banks are at risk of incurring losses, the Bank of England said on Tuesday, warning that some might be letting credit standards slide as they compete to offer debt to households.
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.
Britain's economy is shrinking at its fastest rate since the financial crisis after last month's Brexit vote, making a Bank of England rate cut tomorrow a "foregone conclusion", a closely watched survey of businesses showed.
The Bank of England looks ready to cut interest rates for the first time since 2009 on Thursday, seeking to stop Britain's vote to leave the European Union from kicking the country into recession.
