MEP questions interest rate strategy
08 January 2009
Statement by TUV MEP Jim Allister:-
“Whereas interest rate cuts, which are actually passed on to customers, both business and private, are understandable, cuts which are not, nor which induce inter-bank lending are very questionable.
Moreover, we have now reached the point where the adverse impact on savers, particularly those relying on income from savings, is such as to have, in my opinion, distorted the balance which should exist. A policy which rewards profligacy and punishes prudent savers is wrong. Yet, it is precisely the recklessness of the banks which has induced the present credit crisis. Feeding their greed to the point of punishing the cautious saver and mortgaging all our futures, is not the way to go.
It is now incumbent on government to bring relief to those dependent on savings, both through tax breaks and even guaranteed minimum rates of return. Why should we pour billions into propping up banks, but expect hard-working citizens to pay for it all, both through increased national debt and reduced income on savings?”
