posted on Oct, 1 2016 @ 04:31 AM
The Bank of England is responsible for monetary and financial stability and decisions are independent within the context of targets set out by the
Government. The inflation target is 2% for example, and interest rates are a tool to reach that target. For the last few years interest rates have
been rock-bottom in most developed countries.
I remember, and suffered from the bad old days of excessive interest rates. Not wanting to return there again. However, under the last government
pensioners have been guaranteed increases of at least 2.5% per annum, or inflation/earnings growth – whichever is the higher, so they are doing
In reality this means that pensioners have seen real increases in their pensions, over and above most people’s pay increases. Certainly pensioners,
like everyone else, have low earnings on their savings, but for the majority the general increase in State pensions compensates for this.