Giles Hutson, CEO of Insignis Cash, comments on how savers will be affected by today’s Bank of England decision to hike interest rates:
“Today’s hike is a welcome boost to the savings market. The previous rate rise in November 2017 plus increased competition in the banking sector through the introduction of more challenger banks, will start to restore deposit returns which have been incredibly low for years. Our economy is continuing to perform well, and now is the time for the central bank to make further moves to normalise interest rates.
“A long term low rate environment is unsustainable, and this rate rise sends a clear message that people must incorporate rate changes into their financial planning. Being complacent could drive families or companies into more debt than they can afford.
“This hike will help restore the BoE’s war-chest, giving them the breathing space to reduce rates again should we end up in a hard Brexit situation. Concerns surrounding Brexit uncertainty mustn’t be an excuse to postpone additional hikes; if rates go up, they can always be cut back down should negotiations or the Brexit fall out next year require it.”