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Why has the FLS not helped bring down SVRs?

The Funding for Lending Scheme (FLS), alongside other interventions, has helped bring down both long and short-term wholesale funding costs. But to date lenders have only passed these savings through to fixed-rate products. This may reflect the design of the FLS, but it could also be a sign that lenders are once again relying on customer inertia to boost their margins.

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