The new normal
If ultra-low interest rates are now a long-term given, what is the impact on rationale for saving and social mobility?
by Andrew Davis
When was the last time UK base rates were above 1%? Have a guess. If you said 4 February 2009 – the day before the Bank of England cut to 1%, before lopping off another 0.5% one month later – you get a gold star. Let’s hope that’s enough to make you happy because the return on your savings probably didn’t. To put it into perspective, £100 in the bank for a year at that rate earned you 50p.
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