Finance expert comments on Bank of England holding interest rates at 0.1 per cent

Denise Ko Genovese, Senior Personal Finance Expert of NerdWallet, has commented on the Bank of England having held Interest Rates at 0.1% (below). I hope this is useful if you’re reporting on this story.

“Given the difficult backdrop of rising inflation, the Bank of England is evidently reluctant to destabilise the UK’s economic recovery from the pandemic. With fears of a new cost of living crisis looming, in part exacerbated by likely rises in energy and food costs, the BoE is clearly keen to hold interest rates at current levels to continue offering some short term relief.” 

“That said, consistently low interest rates will never be ideal for cash savers. Low rates, combined with rising inflation could lead to people’s savings stagnating, or worse yet, losing value in real terms.” 

“But Britons should not panic. Instead, I would recommend investigating a wide range of savings options – and comparison sites are a good place to start for this. After all, some banks are still offering competitive savings accounts. Alternatively, some may consider other savings strategies such as stocks and shares ISAs, provided they are fully aware of the risk beforehand. Taking the time to research all avenues will help Britons to remain in control of their savings.”