Apparently the Bank of England has been nicknamed ‘Unreliable Boyfriend’ in financial circles as it keeps ‘raising expectations’ that it will increase interest rates then ‘failing to deliver’. A tad sexist, I think, as I’m sure I remember plenty of girlfriends who did the same. Anyway, various Bank persons have said next month is the month when rates may go up to 0.5% or even 0.75% and the result each time is that you can buy more $ or € for your £; until, of course, they ‘fail to deliver’ again. Let’s see if the boyfriend follows through and buys dinner (insert your own metaphor here) this time.
“The true impact of inflation on cash savings and pensions”
Leaving your money in the bank or building society has always meant that its ‘real value’ after inflation will go down. Although rates go up to, supposedly, control inflation, any chart you look at will show that, apart from a few very short-term blips (N Lamont, I’m looking at you) they are never more than inflation.
