PEOPLE with money on deposit are being subsidised at the moment and mortgage payers will end up bearing the pain — unless the Government moves to cap saver rates, a leading broker said yesterday.
So let’s make the people who have money as opposed to those who borrowed money bear the pain instead. Nice. Philip O’Reilly recommends we cap deposit rates to 2%. Clearly the fact that banks desperately need deposits for capital requirements has passed him by. Deposits cost banks money. They wouldn’t be paying it if they didn’t need the deposits. Capital requirements are slightly more important to your average bank right now than new mortgage business – they have plenty of mortgage business already, like. That they are having some difficulty managing.
He’s in the mortgage business and their new business has fallen off a cliff. I wonder if there’s any connection. Couldn’t be.
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