Yesterday’s news – people are not shopping. What a surprise! Today’s news – the interest rate remains at 0.5%, could there be a connection? Of course there is, so why can’t the Government and The Bank of England see that?
Retired people, who have saved their money in order to live on the interest from their investments are suddenly deprived of their income. Retired people who have plenty of time to go shopping are no longer able to do so. Retired people who have enjoyed having some money to spend no longer have it, and therefore have cut down on their shopping. It seems very obvious to me, but then I am not an economist.
Investors are being penalised in favour of borrowers, but wasn’t it too much borrowing that put us in this mess in the first place? How about giving the investors a break for a change?