Saving Is The Illogical Option According To BoE

Charlie Bean, who effectively sits on the committee that determines the Bank of England’s rates is urging us as a nation, to get out and spend more. I know what you’re thinking…easy for him to say!

Here we are, desperately trying to be good and not fritter money down the drain and somebody tells us to give up saving and inject our hard earned money into the economy.

Mr Bean’s point is this, at the present, bank interest rates are so low (a measly 0.5%) that where as in the past our pounds would have multiplied into a larger pile, now they do little more than collect dust in a savings account. It is better, he argues, to use your money in a more enlightened way.

What he is referring to in particular is spending within both households and businesses. He comments that whereas in the past savers had benefitted from high rates, that now they should eat into their capital and generally ‘get spending.’

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