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Record lending rates: a rip off?

Bank of England
Bank of England

Carl Court/PA Wire/Press Association Images

The average gap between the Bank of England interest rate and the rate we are being charged to borrow money on mortgages, credit cards and overdrafts has grown to a new record. The Daily Telegraph is up in arms, about it

So are we being ripped off, or is this neglecting a massive part of the story?