The Bank of Englands interest rate is now 1%, for the life of me I cannot understand how on earth this helps the economy. From what I have heard Banks are now no longer interested in lending money to businesses at such a low rate as there is very little profit in it for them. Building societies who are no longer paying reasonable interest so savers wont bother to save and the Building Societies will have less money to lend. Those people who are dependant on an income from their savings have been hit severly by falling rates, who then are the winners in this situation, well in my view its the Banks, they are in a win, win situation, and who got us into this situation in the first place......Whilst paying in a cheque recently I was asked by the cashier in the bank if I would like a financial review or some financial advice, I will let you get guess what my reply was.
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