A new era, but no change in interest rates, as savers are left disappointed

No surprises as interest rates and QE remain on hold_istockphotoToday might have marked the start of a new era, as Mark Carney chaired his first meeting of the Monetary Policy Committee (MPC), but the result was all too familiar. The MPC has decided to leave base rate unchanged at 0.5% for another month and also voted for no additional Quantitative Easing (QE) measures. The Bank of England has not changed base rate now since March 2009....

Annuities: Annuity rates drop by 29% since Quantitative Easing started

Falling profitsNew research has confirmed the devastating impact Quantitative Easing has had on Annuity rates. The figures, from AXA Life Europe, show since Quantitative Easing was introduced by the Bank of England in March 2009, Annuity rates have dropped by 29%. Annuity rates have been falling for some years due to increased life expectancy. However, the research from AXA provides confirmation, if any were really needed, that Quantitative Easing has pushed Annuity rates significantly lower. The Bank of England has previously ...

No change to interest rates

No change to interest ratesIn a move which will surprise no one, the Bank of England’s Monetary Policy Committee, has decided to leave base rate unchanged at 0.5%. The vote for the status quo means that the Bank has now kept base rate at 0.5% for four years, a record in modern times. The news that interest rates will remain unchanged for yet another month, will please borrowers, particularly individuals and businesses with interest rates linked to the base rate. However, savers, who have seen interest rates ...

Pensions: QE affecting Annuity rates, government should do more to help

A committee of influential MPs has said that the government should be doing more to help retirees affected by falls in Annuity rates due to the Bank of England’s policy of Quantitative Easing (QE). Falling Annuity rates Reporting back on the recent Budget, the Treasury Committee said that QE was causing Annuity rates to fall and that “lax monetary policy” was “particularly penalising savers.” Any pension Annuity calculator will show how far Annuity rates have fallen in recent months, caused in no small part by falling gilt yields, which are one of the side effects of the Bank of ...