Money Nut

The banks seem to be staying strong and improving their profit margins. So who would actually benefit from interest rates of 0%? Many high street banks have already declared that they won't be passing on any more interest-rate reductions to homeowners with tracker mortgages, so will a rate cut just improve their profits? Or will they benefit joe public?

Banks could do with passing on the interest rate slashes to their customers - this would improve consumer confidence and get the spending ball rolling. Only then could we see improvements when it comes to the retail sector. The government needs to force lenders to pass on the savings - how this can be done, I'm not quite sure.