Bank of England: savers should eat into cash - Channel4 News

Bank of England: savers should eat into cash - Channel4 News: "The Bank of England has urged Britain's army of savers to 'eat into' their reserve funds now to get through the current period of historically low interest rates, saying 'in the short term we want to see households not saving more, but spending more'.

In an exclusive interview with Channel 4 News, the Bank's second-in-command, Deputy Governor Charlie Bean addressed the fate of 22 million savers who are currently enduring the lowest savings rates in British history and shrinking returns after inflation.

He told Channel 4 News Economics Editor Faisal Islam: 'I think it needs to be said that savers shouldn't necessarily expect to be able to live just off their income in times when interest rates are low. It may make sense for them to eat into their capital a bit.'"

Additonal quote:

"Savers shouldn't see themselves as being uniquely hit by this. A lot of people are suffering during this downturn." Charlie Bean

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