Not sure that the Bank of Englands (BOE) Mark Carney nor his flavour of forward guidance has really helped us gauge when interest rates will start their path to normalisation. After setting clear criteria of what will preempt a rise, the BOE has had to hastily back track away, month after month, given that the criteria were met earlier than expected. And a rise wasn’t even close to being on the horizon. The forward guidance has been a bit pointless to say the least.
Instead guidance has been replaced with cautious forecasts for growth and the return to speculative guesswork (opinion) from media economists of when the first rate rises will come.
With savers interest rates falling away further in recent months, and accounts pulled. I would imagine that short of allowing inflation to erode away savings, investors will definitely now need to contemplate other alternatives for the medium term, including stocks. The only certainty for the next few years is that savings accounts arent going to be an attractive proposition for the average saver for quite a number of years.
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