Tuesday, February 24, 2009
Savers are no longer required thank you
The Bank of England has given its clearest indication yet that interest rates will have to be slashed further towards zero as the recession intensifies. Andrew Sentance, a member of the Bank's Money Policy Committee, said that "more stimulus" would be needed to avert the risk of Britain sliding into deflation - with prices falling as they did in 1930s America. The warning comes with interest rates at only 1 per cent, and will be taken as a sign that the Bank is preparing to cut them even further in the coming months.