Scottish independence vote could delay base rate hike
Bank of England governor Mark Carney has suggested that the base rate may start to rise from its historic low of 0.5% next spring. Although, if Scotland votes for independence next week, this may delay the rate hike as the rest of the UK deals with the economic effects of separation.
Scottish independence is a real concern for many of the banks and building societies, particularly with the currency issues. George Osborne has made it clear that Scotland will not be able to continue using the pound if the Yes vote goes through.
According to reports, the Royal Bank of Scotland, Lloyds Banking Group, TSB, Clydesdale and Tesco Bank have all said they have plans to move to England if independence is voted through. However, in a message to staff, RBS’s chief executive Ross McEwan said this “is not an intention to move operations or jobs”.
According to research from The Telegraph newspaper by analyst Bernstein, relocating would cost RBS and Lloyds £1bn each.
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