Lloyds Banking Group hails "decisive" BoE action

LONDON, March 11 (Reuters) - Britain’s biggest domestic lender Lloyds Banking Group said it welcomed the Bank of England’s “decisive action” to support efforts by banks to continue lending during the coronavirus outbreak.

Earlier on Wednesday, the central bank said it would allow banks to tap special reserves of capital and relaunch a scheme to provide cheap funding to banks who lent to small businesses, as part of a plan to defend the UK economy against the impact of the epidemic, which has already slashed global growth forecasts.

“The package of measures will further strengthen the ability of uk banks to continue to support our customers through the covid-19 crisis,” a spokeswoman for Lloyds said in a statement.

The bank said all customers with mortgages which track the Bank Rate will see a reduction of 0.5% in their rates by April 1. It said it would review its savings rates, but these would not fall by as much as the full reduction in the base rate.

Separately, Barclays said it was reviewing rates for borrowers and savers and will provide more information on the impact of the rate cut in due course. (Reporting By Sinead Cruise, editing by Iain Withers)