Lenders should be passing on lower rates in order to make borrowing more affordable, it has been suggested.
The British Bankers' Association has revealed that the rate at which banks lend to each other has dropped recently.
And according to Moneyfacts.co.uk spokesman Darren Cook, such a drop should be passed on to those seeking secured and unsecured loans.
He acknowledged that risks still exist as a recession appears to be approaching and disposable income will be limited, but added: "However, the cost of finance to the banks looks like it is becoming cheaper now ... they need to pass that onto the consumer now so the consumer gets the benefit."
The Bank of England's monetary policy committee this month voted to lower the official base rate by 0.5 per cent to 4.5 per cent.
It came as several other central banks around the world, including the US Federal Reserve, also cut rates.
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