Low interest rates set to continue in the UK « Copia Wealth & Tax

Low interest rates set to continue in the UK

 

Mark Carney in his first week as Governor of the Bank of England has made a number of reported decisions that have pleased the markets and other groups.

Firstly, it was reported that he used the Underground to journey to work. This endeared him to thousands of other commuters who battle through the maze of tunnels and exits on their way to work each day. It also sends a message to other high level City managers that use rather more comfortable modes of transport…

In a further public relations coo the Bank agreed to meet with a group of women protestors who complained that no women were to be featured on the next series of £5 notes. By Wednesday Governor Carey had announced there would be developments in that area.

The Bank of England also took their first step in forward guidance declaring that there would be no upward change in interest rates for some time to come.  This combined with other, positive economic news, sent the FTSE 100 index around 6% higher for the week.

The forward guidance announcement will be bad news for some. Savers, particularly pensioners, will likely see further reductions in their ISA and other savings’ interest returns in the coming months.