Carney delivers disappointment for savers and pensioners

ThumbThe new Governor of the Bank of England, Mark Carney, dealt a huge blow to savers today, as he revealed the Bank will not consider pushing up interest rates, until the unemployment rate falls to 7%. The current jobless rate stands at 7.8% and to reduce the level to the proposed new threshold would mean an additional quarter of a million jobs would need to be created. Delivering his first Inflation Report Mr Carney said could take a further three years. With at least a nod ...

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....

Savings: Disappointment for savers as interest rates “nowhere near” return to “normal”

Piggy bank with bandage isolated on pink backgroundThe UK’s beleaguered savers, will have been left disappointed by the last public appearance of the outgoing Governor of the Bank of England. Speaking to the Treasury Committee, Sir Mervyn King said that interest rates were “nowhere near” returning to “normal”. He went on to say that an increase to interest rates and the unwinding of the Quantitative Easing program would only start have a significant improvement to the economy. Over the past few ...

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 ...