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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

British expats in the Netherlands could do with more financial help

French FlagWe all need a little bit of extra help from time to time.

For instance, in one popular expat destination, the Netherlands, research was recently published to suggest that many expats could do with more financial help.

The survey, carried out by the International Community Advisory Panel (ICAP), an independent foundation hoping to strengthen the connection between the Netherlands’ international community and the Dutch government, has shown that the majority of expats living in the Netherlands do not receive enough help from the Dutch government when it comes to several key matters, including finding affordable housing and integrating their children into the school system.

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PM Johnson Could Halt the Threat of No-Deal Litigation

Houses of ParliamentBoris Johnson’s elevation to Prime Minister of the United Kingdom has again raised the spectre of a potential no-deal Brexit.

Against this background, it is looking increasingly plausible that predictions of legal action against the UK government by British expats in the EU could become a reality unless the PM takes action. Even in the days before Johnson’s win over Jeremy Hunt in the Conservative Party leadership election, it was warned that expats in Europe could take legal action and sue for loss of rights.

Conservative MP Alberto Costa warned Boris Johnson in a letter dated 20th July 2019*, that unless he was able to tackle the many issues facing expats, his government could be overwhelmed by legal action.

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