Low interest rates have eroded £ 50 billion from savings.

Category: Savings
Date: 07/07/2011

Tens of billions of pounds have wiped off the value of the UK last year because of the rock bottom interest rates savings.

The Bank of England monetary policy Committee (MPC) reports the results of its meeting in July during the day, when is expected if the Bank stay rate to 0.5%.

While the rate, which was - first cut to 0.5% in March 2009 to keep head above water has helped many homeowners, as refunds are forfeited, savers have to reduce their returns.

Figures from Moneyfacts.co.uk published last week showed that the average mortgage rates to their lowest level have fallen since 1998.

The save our savers group takes into account the decision to write to the MPC, urge the members to help to increase fight against relatively high inflation the rate.

It said that it took the decision to "The pain will suffer a saver and fixed income" mark.

In a letter to all nine of the Committee rate setting the action group said: "Inflation was reduced the real value of the nation of cash savings of more than 50 billion pounds in the last 12 months."

"Savers and fixed income, such as such as pensioners, terrible the combination of extremely low interest rates and suffer before target inflation."

"For many, this is no temporary setback. "Its effect will permanently reduce the value of their future income.

"A country with no savings is a country without a future."

Despite the plea is save our savers pessimistic on the prospects of a rise in prices anytime soon.

"What is can we be sure that all but Martin well and Spencer Dale votes are to keep discount rate of only 0.5%,", he predicted.

The probability that a rise in prices was of numbers show that the recovery in the economy is still on an insecure basis while the MPC longest stopped supporters of raises, Andrew sentance, recently his nine month stint of the Committee taken.

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Source: moneyfacts.co.uk