Interest rate cuts bad news for savers

With interest rates set to be cut for the first time in seven years later today by the Bank of England, many holding cash will be left with very little return on capital.

In response to the uncertainly caused by the vote to leave the European Union, the Bank is also expected to announce biggest ever on-record lowering of UK growth forecasts and an unprecedented downgrade of the prospects for the British economy.

A report published yesterday by Reuters, reveals that of the 49 economists surveyed in the past week all say they expect the Bank to cut at least 25 basis points on 4 Aug, lowering interest rates from the already record low of 0.5 per cent to 0.25 per cent. That may be good news for those with large tracker mortgages, but it will certainly impact heavily on savers.

With this in mind, we urge investors to contact us. Our network of Independent Financial Advisers are available to undertake a thorough audit of your current finances and provide alternative strategies and proposals to best fit your risk profile.

Contact Alan Ford or your usual Beavis Morgan Partner.