From David Gainsborough Roberts.
HOORAY for the Bank of England. They have saved us.
Well, they may have saved the boys with the million pound bonuses and the ‘wide boys’ on the Stock Exchange, but they have reduced us savers to a return hardly worth picking up.
Did this similar dramatic cut have any effect on the Japanese economy ten years ago? No! I thought that the Bank of England was independent, but it is obvious that Downing Street had a big hand in this recent base rate cut. Just suppose that all us investors took our life savings out of the banking system. You really would have a bankrupt economy then.
Well, never mind. The saver will have a tough Christmas to look forward to. At least the property ‘spivs’ and millionaire bankers will have a merry old time. And what about inflation now conveniently put into the background?
The only way to beat inflation is by means of interest rates. It doesn’t take a genius to work out that three per cent on your savings and six per cent inflation leads to bankruptcy.