Feeling the Pinch? Revitalise your Finances with our FREE 12 week guide.
Product Guides
Financial Detox
Personal Finance News
What our customers say...
“Keep up the good work guys :-)”
The information in this article was correct at the time of publication and contains time sensitive data and links, it may not be accurate at the time of reading.
Make saving less attractive to boost spending, expert says
Published: 22/12/2008 |
|
If the government wants to get people spending then they must make saving less attractive, an expert has said. Jonathan Loynes, the chief European economist for Capital Economics, said that there would be no effect on people's spending decisions unless saving rates changed. "If you are dead set on saving and don't want to spend any money at all then clearly you are going to get a lower return on that saving than you would otherwise do if interest rates were high," he said. "What the policy makers are trying to do is say to you: 'It's not really worth your while saving so much money why don't you spend it?'." Mr Loynes was commenting on the moves of the US government to increase spending by lowering interest rates, a move which he hopes will be repeated in the UK. On December 4th the Bank of England's Monetary Policy Committee decided to move the UK interest rate down to two per cent.  |
Moneynet is a trading name of Sterling Business Consultants Limited, 8-10 Homesdale Road, Bromley, BR2 9LZ which is authorised and regulated by the Financial Services Authority. This site is intended for UK residents only.
