www.bloomberg.com
Top Bank of England officials have warned that taxing profits made by UK lenders from their holdings at the central bank would threaten financial stability and drive up mortgage costs for households. The proposal would effectively tax the interest the Bank pays commercial banks to manage monetary policy, a move that industry leaders argue would disrupt the banking sector and increase borrowing costs.
Such a tax would reduce the profitability of holding reserves at the Bank of England. Analysts suggest this could force banks to pass on higher costs to customers, particularly those seeking mortgages, leading to broader financial implications for the economy.
Read More
