Lloyds pledges to cut rates

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LLOYDS Banking Group has pledged to cut rates for borrowers after drawing down a further £2 billion from the Funding for Lending scheme (FLS).

A total of 35 banks and building societies have signed up to the FLS since it was launched by the Bank of England and Treasury in August in a bid to increase the flow of credit to the wider economy. However, net lending grew by just £496m in the three months to September.

Lloyds chief executive Antonio Horta-Osorio said: “We are passing on the full benefits of Funding for Lending to businesses and homebuyers as part of our commitment to the scheme and to help foster growth in the economy.”

The bank’s net lending contracted by £2.8bn during the third quarter.