Contact

News & Insights

Savers hit again

Other actions introduced include the unveiling of a radical package of measures worth up to £170billion to help stimulate the economy. Crucially, the Bank of England forecasts Britain will narrowly miss falling into a recession along with a cut in its growth forecasts for the economy, predicting GDP growth of 0.8 per cent for next year. 

The Bank announced it is increasing its quantitative easing programme by printing £60billion more money to take the total to £435 billion since the banking crisis. Significantly, it also unveiled a radical £100 billion funding scheme for banks and a £10 billion corporate bond-buying scheme; decisions that the Monetary Policy Committee was divided on.  As part of the statement released, there is a forecast that unemployment will rise.

The new 0.25 per cent base interest rate spells good news for mortgage holders and other borrowers, but will heap further misery on savers, who have suffered from the long-term low rates. The previous interest rate level of 0.5 per cent had remained since March 2009. The new lower rate could also hit sterling, with experts warning of a further devaluation which would mean higher costs for British holidaymakers and expats living in the Eurozone who are paid in sterling. 

Today’s cut in interest rates is the latest hit to savers, who have suffered more than 1,000 rate cuts during 2016 alone, it has been reported. That equates to around nine savings rates being chopped for every rate that has increased since the start of 2016. 

If you have savings lying stagnant in the UK it is surely worth an hour of your time to speak to a reputable financial adviser.

This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.

Other News

How to track expenses effectively in 2022

After the indulgence of the holiday period, many of us turn towards creating new habits and resolutions in the new year. One of the most popular goals for the new year is creating and maintaining good financial practices, whether this be saving, paying off debt or reducing unnecessary expenditure. Arguably the most important step in […]

Read More

What are the best cities to move to in Spain?

Any expats looking to move abroad from the UK to Spain will obviously need to decide where to make their new home. Like many other popular Mediterranean countries, the majority of cities in Spain boast sun, fun, and fantastic culture, but if you’re looking for something particular, the following cities may be just the right […]

Read More

Select your country

Please select your country of residence so we can provide you with the most relevant information:

You are currently viewing the Blacktower Financial Management EU website.

You may be looking for the Blacktower United States website.

Blacktower United States > X Stay on this site

Or choose your country.