Savers and pensioners being sent to poorhouse?

Campaigners say that the Bank of England’s decision to keep interest rates down in the dumps while continually pouring newly-printed money into the economy through quantitative easing has done nothing but send savers and pensioners into the poorhouse.

Save Our Savers has been carrying on for years how the interest rates on the nation’s savings products have been plummeting since the BoE’s Monetary Policy Committee has stubbornly refused to raise the base rate out of the gutter for more than three years straight.  Meanwhile, pensioners have been getting the short end of the stick as well as their annuity rates have fallen along with the base rate – proving that the MPC has a talent for alienating as many Brits as possible with one poor decision – and the worst part is that economic experts agree that the base rate will no go up anytime soon, meaning that savings and annuity rates will remain in the toilet until at least 2014.

Save Our Savers spokesman, Simon Rose, had choice words for the BoE’s decision to freeze the base rate for such an extended period of time, commenting that it’s almost as if the Bank stands surprised at the economy’s lack of traction after throwing a huge spanner into its works.  Other industry experts have simply slapped their foreheads in frustration with the MPC, especially as the inflation rate creeps ever higher; the UK’s target rate of 2 per cent inflation is nowhere near attainable, with the Consumer Prices Index standing at a hefty 3.5 per cent as of its last measurement, and has left savers particularly up the creek with savings products that return less than that rate annually after tax is taken into account.

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