The Bank of England announced this week that interest rates will remain at an historical low of 0.5% which is great news for those who are on a standard variable rate mortgage but not so great for those looking for a healthy return on their savings.
The Bank of England also stated that the UK economy is estimated to grow by 2.2% in 2016, down from the previous estimate of 2.5%. They also reduced 2017’s outlook to 2.4% from 2.7%.
It has been headline news recently that the slowing of growth worldwide and plunging oil prices, which have fallen by more than 70% since a peak in the summer of 2014, have contributed to a slowdown in the economy of the UK. The United States economy has also grown by less than expected and there has also been considerable falls in the prices of risky assets as well as a significant fall in oil prices.
The Bank of England stated that developments in financial markets seem in part to reflect greater weight being placed on the risks to the global outlook stemming from China and other emerging economies.
Taking all the above into account, it is safe to assume that any rise in interest rates is far off for the time being however, the long-term low interest rates have been hitting savers hard and it’s these savers that will continue to feel the brunt.
So, if you’re looking to save or invest (or would simply like to understand the difference) and would like to get some advice on possibly getting a better return on your money, why not get in touch? Simply complete the form below and we will be in touch as soon as we can.