singular_me
4th March 2015, 06:06 AM
financial slavery explained in 2mins.
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Six years of flat interest rates has cost savers £130BILLION: Figure equates to £5,000 for every home in the UK
Bank of England slashed interest rates to historic 0.5% low in March 2009
Report shows crippling impact low rates have had on prudent households
Amount of cash in accounts paying no interest risen from £47bn to £150bn
Investment firm Hargreaves Lansdown said future 'doesn't look too much rosier'
However, Mr Khalaf said that without ultra-low interest rates ‘we would almost certainly have been left in a much sorrier state by the financial crisis’.
He added: ‘There have also been beneficiaries of low interest rates, most notably borrowers, who have seen their mortgage payments fall substantially.’ Bank of England governor Mark Carney has admitted low rates ‘help debtors at the expense of savers’.
The Bank is expected to leave rates at 0.5 per cent again tomorrow, when the monetary policy committee finishes its latest monthly meeting.
Mr Carney has suggested that rates could even be cut again – possibly to 0.25 per cent or even closer to zero – if ultra-low inflation persists. But he and other senior Bank officials have also claimed the next move in interest rates will probably be up.
It is thought rates could start to rise late this year or early next year, although Mr Carney has insisted increases should be ‘limited and gradual’.
Dr Ros Altmann, a government advisor and pensions expert, said the over-65s have been offered ‘a bit of relief’ through so-called pensioner bonds. These offer 2.8 per cent on one-year bonds and 4 per cent over three years.
But she added: ‘Anyone younger than 65 is really struggling to make their savings pay.’
Read more: http://www.dailymail.co.uk/news/article-2978426/Six-years-flat-rates-cost-savers-130BILLION-Figure-equates-5-000-home-UK.html#ixzz3TQRz7KKw
------------------------
Six years of flat interest rates has cost savers £130BILLION: Figure equates to £5,000 for every home in the UK
Bank of England slashed interest rates to historic 0.5% low in March 2009
Report shows crippling impact low rates have had on prudent households
Amount of cash in accounts paying no interest risen from £47bn to £150bn
Investment firm Hargreaves Lansdown said future 'doesn't look too much rosier'
However, Mr Khalaf said that without ultra-low interest rates ‘we would almost certainly have been left in a much sorrier state by the financial crisis’.
He added: ‘There have also been beneficiaries of low interest rates, most notably borrowers, who have seen their mortgage payments fall substantially.’ Bank of England governor Mark Carney has admitted low rates ‘help debtors at the expense of savers’.
The Bank is expected to leave rates at 0.5 per cent again tomorrow, when the monetary policy committee finishes its latest monthly meeting.
Mr Carney has suggested that rates could even be cut again – possibly to 0.25 per cent or even closer to zero – if ultra-low inflation persists. But he and other senior Bank officials have also claimed the next move in interest rates will probably be up.
It is thought rates could start to rise late this year or early next year, although Mr Carney has insisted increases should be ‘limited and gradual’.
Dr Ros Altmann, a government advisor and pensions expert, said the over-65s have been offered ‘a bit of relief’ through so-called pensioner bonds. These offer 2.8 per cent on one-year bonds and 4 per cent over three years.
But she added: ‘Anyone younger than 65 is really struggling to make their savings pay.’
Read more: http://www.dailymail.co.uk/news/article-2978426/Six-years-flat-rates-cost-savers-130BILLION-Figure-equates-5-000-home-UK.html#ixzz3TQRz7KKw