Carney Confident Banks to Pass On Rate Cut to Customers: Chart

Mark Carney issued a sidelong warning to British banks on Wednesday as he testified to U.K. lawmakers, saying he’s “highly confident” lenders will pass the Bank of England’s August rate cut onto their customers, “but we’re watching.” Data on home loans shows the BOE governor might be right, with mortgage rates dropping to a record low in the month. Other loan costs also need to come down though, and Carney said that if there’s a clear improvement in funding conditions that’s not being passed on then the BOE “might be in a position to ask why not.”