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£43b to be wiped off saving in a year due to Bank of England's high inflation rates
28/12/2011
It has been predicted that in total £43billion worth of savings will fail to be added to household nest eggs by November 2012. This has been caused by the negation of interest rates due to the high levels of inflation required to assist economic recovery.
The average new instant access account pays out just 0.93% - there is obviously a large shortfall between this rate and the current CPI at 5.2%, resulting in savers seeing a reduction in spending power of their savings over time.
Four years ago, the average instant access account was paying out 4.21%, but today the rate is being pushed back due to the 0.5% restriction placed on interest rates by the Bank of England.
Save Our Savers campaign MP, Simon Rose, has responded to the £43b deficit in saving over a 12 month period by accusing the Bank of England's policy makers of negligence. He states that the Bank is failing to meet it's inflation target of 2% which is impacting on the nation's savings which will in the long-term expose the financial health of the country.
Homeowners aged over 55 years who have been affected by the downturn in the economy and would like to know how much money the value of their property could release to increase their income, can find out by contacting therightequityrelease.co.uk for equity release advice.
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