With real interest rates close to 0% people
Hunh?
Nominal interest rates on bank deposits are close to zero.
CPI annual inflation – the Government’s target measure – was 3.1 per cent in September, unchanged from August……RPIX inflation – the all items RPI excluding mortgage interest payments – was also 4.6 per cent in September, down from
4.7 per cent in August.
Real interest rates are minus 3-4%.
I think he meant imaginary interest rates
To be fair, the technical meaning of “real” in “real interest rates” must be confusing to the layman. What’s that you say?
So the government’s well-fiddled figure for inflation is 3.1%, and the government’s slightly-less fiddled figure is 4.6%.
Do they even tell us what the real figure is any more?
Shall I guess 5.5%? 6%? Or even more?
Except that bank rates are only at 0% for them as aren’t prepared to make an effort to get better. The Post Office instant access Online Saver pays 2.9%. If you don’t plan to make more than 1 withdrawal a year and have a min £1000 you can get 2.99% from Nationwide. If you can pay in £500pm (and are willing to put up with their frankly abysmal customer service) you can get 5% on current acct balances of up to £2500 from Sanander. With £1000 available for transfer (or the time to bounce a smaller amount between accounts online to get £1000pm in and out) you can get a fiver a month out of the Halifax over and above any interest you earn on it elsewhere.