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.
“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.
