Pension expert reaction to interest rates being held

Thursday’s interest rate hold will be something of a mixed bag for savers.

For some, it might mean continuing to grapple with bloated mortgage and debt repayments, for others, it equates to at least another few weeks of enjoying favourable interest rates on savings accounts.

For many, it will indeed mean both.

Inflation remains sticky and people will be considering the best ways to get their savings goals back on track – while the base rate was held today, cuts are likely to recommence towards the end of the year. Retirement planners, for instance, will be contemplating how to best take advantage of high interest through their financial products, whether savings accounts or pension products.

With that said, it’s important that savers avoid making hasty decisions in response to inflation and interest rate data. The current complexity of the market highlights the need for the government to rise to the long-promised challenge of providing greater access to financial education and independent financial advice.