The Bank of England’s Monetary Policy Committee today voted to reduce the official Bank Rate paid on commercial bank reserves by 0.5 percentage points to 0.5%.

In addition to the latest cut in interest rates they have also agreed to undertake a programme of asset purchases of £75 billion financed by the issuance of central bank reserves.

Whilst the latest cut will be good news for borrowers and businesses, it will not be good for savers.

Savers have been savaged by the severe cuts in interest rates and many savers have seen their income drop by as much as 50%.

Savers looking for income need to review their current situation. There are investment opportunities , but this needs to be balance off against risk.

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