Lloyds TSB pledges to pass on base rate cuts - commercial mortgages

07 January 2009

A high street lender has vowed to pass on to business customers any Bank of England base rate cut that is made when the monetary policy committee (MPC) meets tomorrow.

Lloyds TSB has pledged to lower rates in line with the MPC's decision for clients with variable-rate commercial mortgages, loans or overdrafts.

The lender stated that the move is part of its six-point charter that it produced in December aimed at helping small firms through the economic downturn.

John Maltby, the managing director of Lloyds TSB Commercial, claimed that the bank is honouring its promise to aid businesses and make sure they get the "best possible support".

He added: "As the economic environment continues to challenge small businesses, we're committed to supporting our customers by easing the pressure."

At present, the base rate stands at two per cent following the last MPC decision that was announced on December 4th.

This move was voted for unanimously by all nine MPC members.