09 Jul 2011
Savers’ group called for Bank rate rise The real value of UK savings has been reduced by more than £50 billion over the last 12 months because of low interest rates and above-target inflation, a campaign group has said.
Save Our Savers wrote to all nine members of the Bank of England’s rate-setting committee, calling on them to up the rate to encourage saving and help those hardest hit, like pensioners. But yesterday (Thursday July 7th), as expected, the Bank’s Monetary Policy Committee voted to keep the official bank rate at 0.5%, as it has remained since March 2009. “A country without savings is a country without a future,” the group said. Savers and those on fixed incomes, such as pensioners, are “suffering terribly” from the combination of extremely low interest rates and above target inflation, it said. “For many this is not a temporary setback. Its effect will permanently reduce the value of their future income.” Recently, the Office for National Statistics said high inflation was to blame for Britons struggling to find extra money for savings. Posted by Martin Ellis