Borrowers 3 - Savers Nil

Well, as I guess most of us expected, the MPC cut rates today by 0.50%.
My own view is that they have not yet allowed time for previous cuts to have an effect and that this one was not necessary. Mortgage rates are pretty much at an all time low for existing borrowers and I am concerned that people will get used to artificially deflated mortgage repayments and then struggle to cope with payments increases when rates go back up to more normal levels of around 5%. My advice to anyone (and I am doing this) is to leave their payments unchanged and enjoy being able to repay your mortgage a bit quicker.

My other concern is for savers, particularly retired savers who rely on interest for their income. For those of us not yet retired, it is really only important for interest to be above the rate of inflation (which I think it is likely to be in the near future) but if you are on a fixed income it is the absolute amount that matters.

My thoughts now need to be on how we handle this rate cut, I want to limit damage to our loyal savers where possible, so I need to think hard....