THE TELEGRAPH: Interest rates, already at their lowest level in history, are expected to fall yet further next week to 1 per cent, hitting hard pressed savers.
The Bank of England's monetary policy committee is meeting on Wednesday and Thursday to decide on whether to cut interest rates once again, to stave off the worst of the mounting recession.
If it does so, it will be the fifth month in a row it has cut rates. It has already slashed them from 5 per cent at the start of October to 1.5 per cent, the lowest they have been since the Bank was founded in 1694.
In recent weeks the economic data has worsened, with more and more businesses forced to axe staff, shut down factories and delay investment.
However, a further cut would be a severe blow to savers, who are already suffering from a dearth of good savings accounts. >>> By Harry Wallop, Consumer Affairs Editor | Friday, January 30, 2009
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