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Carney forecast a step in the right direction

Ryan Fowler

March 13, 2014

The Bank of England Governor made was speaking to the Treasury Select committee earlier this week when he said rates would go up.

Interest rates have stood at 0.5% since they were was halved five years ago.

But Green said: “This is, of course, another welcome positive indicator that the economy is recovering.

“Naturally, the forecast is also step in the right direction for anyone who has savings in a bank or building society – and especially for pensioners and others living off a fixed income.

“These savers, who represent the vast majority of the UK population, are the ones who have been hit hardest by the interest rates being at historic lows for so long.”

Earlier this month, Green also said he expected British retirees in particular to consider high risk investments to secure a better rate of return on their savings.

He added: “I do not expect the millions of hard-working Brits, who have been prudently putting money aside and who have been adversely affected by years and years of monumentally low interest rates, will be hanging out the bunting and popping the champagne corks just yet.

“Traditionally, the mindset has been that as we get older we should reduce our exposure to risk and, for example, increase holdings of cash and bonds.

“However, in today’s world this prudent intention could have serious unintended consequences.”


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