“The Bank of England completely ignored the warnings last Thursday to raise interest rates and it is now paying the price. This latest jump in consumer price inflation – which is above census forecasts - suggests that the Bank has been asleep at the wheel. It now needs to get a grip, and show its determination to combat the ravages of inflation on savers and signal its intent to start raising rates.
“At the moment savers and pensioners are being hit by a double blow of low interest rates and high inflation, and Saga is deeply concerned. We are of the view that a small rise in interest rates will send a positive signal to increasingly desperate savers, without having an adverse effect on the economy. The sooner the Bank acts, the better.”
For more information please contact the Saga Press Office on 01303 771529