My prediction after studying economics is that banks will probably pay only 2% or 3% on savings accounts. They may be able to borrow additional funds at 8% from the Bank of England.
The reality is, that to control inflation, interest rates on borrowing must be high. The laws of supply and demand prevail, so no business will borrow money unless they can make more by doing so.
If the IMF borrows money from governments, but governments are all borrowing money tehmselves, from where is this money expected to come?
Even the world's biggest economy is trillions of dollars in debt, and refuses to lend any more to the World Bank and IMF.
The reality is that the Reserve Bank borrows money (from the Bank of England) and lends it to teh national retail banks to lend to business and housing. It does so currently at 4.5%, yet it pays more to borrow it. This makes no economic sense, as it contributes to the government defecit.
What it must do is borrow (fron the Bank of England at 5%, and lend to teh retail banks at more.(6%, 7%, 8%, 9%), but at one rate. Also loans cannot be written off, interest must be paid, at least. In time inflation will make teh amount smaller.
Companies who issue shares will probably pay 10% on the nominal ($1) value of the share, not the market value, which reflects the assets of the company. If money is available at 8.25% they may prefer to borrow from a bank, rather than a sharemarket.
Banks which borrow from their customers at 2%, and lend at 8.25% , 8.5% or 9%, will make more, and if they borrow from the government, they will still pay 8%, with the government making nothing from the transaction, (except the british taxpayer, who owns the Bank of England will get 5% on the bank's lending to governments to fund the defecit.