Thursday at the Bank of England was much like any other day. And then…nothing happened (one for Python fans). Interest rates stayed at 5.25%, just as, in Europe, they stayed at 4%. What does it all mean? Is this the beginning of the end for nothing happening to investments? Well, yes, it does signal that there may be a sense that inflation may be likely to continue to fall. Governments both here and there and across the Atlantic are desperate for it to do so before elections next year. Then interest rates can come down and off we can go again. Those are the issues which are holding back stock markets and the faintest firm glimmer of hope will send them up again. Perhaps quite sharply. Watch that space.
I have been a big fan of Premium Bonds for many years now, and still regularly recommend them as an alternative to a bank or building society cash reserve.