What on earth is 'Forward Guidance'

[Kendhni]

BoE unveils new strategy
Should be an interesting read later on today to see what this latest buzzword means. Looks like savers are in for a lean time for the next few years.

[GillD46]

It's very depressing; when we were younger and had little in the way of savings, we were hit with 15% interest rates on our mortgage, now we have reasonable savings and had expected a good income from them, rates are so low we are getting far, far, far less than we'd hoped for.

We have just accepted we aren't meant to benefit from low rates - ever - just can't win!

[Susan Watt]

Join the club. I thought it was just us

[david63]

I was emailed something yesterday which I didn't take much notice of but if this is one and the same then this policy could have far reaching consequences - and not in a good way.

One of the major concerns amongst economists is that it will cause a major fall in the strength of the pound in the short to medium term

[emjay45]

It's very depressing; when we were younger and had little in the way of savings, we were hit with 15% interest rates on our mortgage, now we have reasonable savings and had expected a good income from them, rates are so low we are getting far, far, far less than we'd hoped for.

We have just accepted we aren't meant to benefit from low rates - ever - just can't win!

Same for us Gill. Just think if interest rates were that high now. All of these young people moaning about how tough it is for them because baby boomers are taking too much money from the government's coffers would really have something to moan about.

[towny44]

BoE unveils new strategy
Should be an interesting read later on today to see what this latest buzzword means. Looks like savers are in for a lean time for the next few years.

From comments on the news yesterday this is a policy of giving long term notice of a possible change in BOE interest rates. It is supposed to help business plan their investment strategy.

[Mervyn and Trish]

It was excess and irresponsible spending/lending/borrowing that got us in to this mess. So how do they plan to get out of it? Encouraging more spending/lending/borrowing! Great plan. Stuff the savers. Me, hacked off? Well yes actually.

[Kendhni]

Overall for the economy and recovery it sounds like a half decent idea, however, as has been the case for quite a few years now the savers will be bearing the cost.

I also remember 15% (ish) mortgage rates .. if only I had have had some savings back then. Maybe it is time to milk Zopa (or similar) borrowers for as much as can be squeezed out of them .. or create my own Wonga ... could call it 'Bongo' following the free advertising from a couple of politicians .. maybe charge double interest and call it 'Bongo, Bongo'

[towny44]

I was emailed something yesterday which I didn't take much notice of but if this is one and the same then this policy could have far reaching consequences - and not in a good way.

One of the major concerns amongst economists is that it will cause a major fall in the strength of the pound in the short to medium term

This might not be the same thing David as I note that sterling is very bullish following Mr Carney's announcement.

[Quizzical Bob]

It's a plan to keep inflation high and reduce the value of government debts. As usual it's the savers who suffer because of this.

[Dark Knight]

Dear oldies and members of the "I remember when it were all crap" club

as you cannot take it with you, either start divvying it up amongst the family or spend it quickly

if you have any sort of mortgage left use your savings to pay it off or a bit left field...prepay your funeral expenses so the family get a few more quid when you are gone

A bit of forward planning that's the ticket



T.I.C. so don't go off on one