A lot is being said about interest rates at the moment. Some pundits are saying reductions in Bank Base Rate will have the effect of reinvigorating the housing market. Problem is we do not have mortgages with the Bank of England but with high street Banks and Building Societies and they don’t have to pass on interest rate cuts. Instead they can look to rebuild their profit margins and battered balance sheets. This attitude was signalled in a new CML “newsletter” targeted at MPs which aimed to silence recent criticism about the failure to pass on interest rate cuts:- “It is incorrect to assume that a base rate reduction will (or should) automatically result in a cut in standard variable rates or discounted rates”. Expect some political pressure to be brought to bear upon Lenders who don’t play ball.