Bank of England

The Bank of England has reduced the bank rate to 1.5 percent yesterday. This rewards the frivolous borrowers who caused the current financial crisis, whereas prudent people who saved for the future are punished by declining interest rates.

The bank’s policy will eventually produce inflation, which will wipe out the debts of most of those who have borrowed. They will look back and think how wise they were. Those who saved will see their value of their savings eroded away, and wonder what they did to deserve it such harsh treatment.