PROTESTERS gathered outside the Bank of England in London today ahead of the latest interest rate announcement to demand an end to “interest inequality” and cash handouts to banks.

The demonstrators dressed as the bank’s governor Andrew Bailey and Prime Minister Rishi Sunak handed “cash” to other protesters sporting the colours of HSBC, Lloyds Bank, Barclays and NatWest.

The action symbolised the public money the Bank of England will pay Britain’s top banks in interest on the risk-free reserve accounts they hold with it, estimated to reach £42 billion this year.

Protest organisers Positive Money and The Equality Trust said this handout was money that could be better spent on improving public services and raising the pay of those who work in them.

The action also highlighted the unequal impacts of interest rate rises, which have seen the profits of the four banks swell to almost £30bn for the first half of this year — an 80 per cent increase on the same period last year — while housing costs for families have soared.

It came as the Band of England said it will not be raising interest rates for the first time in almost two years, keeping the base rate at 5.25 per cent.

Officials still left the door open to further rises in the future, promising to “take the decisions necessary” to return inflation to normal levels.

Organisers of the protest welcomed the announcement, arguing that raising interest rates has done little to bring down inflation.

Positive Money head of campaigns Hannah Dewhirst said that inflation is “fuelled by international fossil fuel prices and food prices disrupted by war and environmental breakdown.”

“They will only continue to impoverish households and enrich banks,” she said.

“What we need are better tools for dealing with inflation than blunt instruments like interest rates, and a windfall tax on bank profits to redress the harm done to workers and families by rate hikes.”

Equality Trust co-executive director Priya Sahni-Nicholas added that the announcement “doesn’t make up for the harm they’ve already done.”

She said: “Our system and policy choices are failing everyday Brits.

“Banks, supermarkets, and energy firms have taken obscene profits, while widespread below-inflation pay increases have left workers taking out loans to pay for everyday essentials.

“We need to take a long hard look at why our economic policies consistently bolster the riches of the already-wealthy and hurt those grappling with the rising cost of living.

“The only way out of the crisis is to reduce, not grow, the gap between us and the richest.”

Union leaders also welcomed the halt in interest rate rises, with TUC general secretary Paul Nowak calling it “long overdue.”

“But the government also needs to act,” he said.

“Instead, the Tories are driving our economy into a ditch. 

“We urgently need a credible plan that delivers a strong, thriving economy and decent, well-paid jobs for everyone.”

Unite general secretary Sharon Graham said that the only winners from rate increases have been the big banks, adding: “Now it’s time for the Bank of England to heed its own research and tackle the profiteers driving inflation.”

Shadow chancellor Rachel Reeves said that households coming off fixed-rate mortgages will still be paying an average of £220 more a month due to previous hikes.

And Scottish Greens economy spokeswoman Maggie Chapman said the announcement will be “cold comfort” to families “feeling the pain and paying the price” of the highest interest rate for 15 years.