I’m usually known for my tongue in cheek slant on life, but my mind has today been tuned to a modern ponderable. I have just seen that the Bank of England is expected to announce another cut in the interest rate, down to 0.5%, in an attempt to revive the economy.
Just whose economy are they reviving? My bank hasn’t offered me a cheap interest loan since rates started dropping a few months ago, my credit card company hasn’t lowered my interest rate and savers are getting next to no return for their money.
The stock market still falls every day, companies are still going into administration, shops and pubs are still closing, redundancies are on the rise and pensions are being eroded, even a certain retired bank executive has been asked to hand back some of his pension! (I’ve managed to get a bit of satire in, then)
My first thought was that the banks were profiting from these cuts but they appear to be failing as well. If savers get almost no return for their money surely they are not putting it into the bank and if the man in the street is in jeopardy of losing his job, he’s not going to take on a bank loan so the banks can’t be taking in much money either.
So, Mr Darling, just who is profiting?