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8 September 2011
Last updated at 05:01 ET
Savers have lost out on £43bn but mortgage borrowers have gained £51bn owing to low interest rates.
The Bank rate is widely expected to remain at 0.5% when the Bank of England's Monetary Policy Committee makes its latest statement at 1200 BST.
The fortunes of savers and borrowers have been in stark contrast owing to low rates, figures obtained by the BBC from the Bank of England show.
This is revealed by the incomes of savers and the payments of borrowers.
Incomes Those who rely on the interest on savings for an income, such as some pensioners, have suffered as a result of low rates. However, many families with mortgages have benefited.
The Bank rate was cut to 0.5% in March 2009, and has remained there ever since.
The £43bn of losses savers have had to bear, comes from comparing their income before and after the Bank cut rates to 0.5%.
But because savings in banks and building societies are outstripped by mortgages, mortgage borrowers have gained by a wider margin.
They have paid £51bn less in monthly interest, the figures show.
As well as considering the Bank rate, policymakers will also announce a decision on whether or not to put more money into the economy by extending the £200bn quantitative easing (QE) programme.
However, the move could push up the inflation rate, which is already well above target at 4.4%, and put more pressure on household budgets.
Policymakers have come under increased pressure after Chancellor George Osborne admitted on Tuesday that the economy had weakened and that short-term hopes had been revised down in recent weeks.
The latest estimate from the National Institute of Economic and Social Research (NIESR) also suggested that the rate of growth in the UK economy slowed to 0.2% in the period from June to August.
How have low interest rates affected your financial planning? Would you be happy to talk to a BBC journalist? Send us your comments and experience using the form below.
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The Bank rate is widely expected to remain at 0.5% when the Bank of England's Monetary Policy Committee makes its latest statement at 1200 BST.
The fortunes of savers and borrowers have been in stark contrast owing to low rates, figures obtained by the BBC from the Bank of England show.
This is revealed by the incomes of savers and the payments of borrowers.
Incomes Those who rely on the interest on savings for an income, such as some pensioners, have suffered as a result of low rates. However, many families with mortgages have benefited.
The Bank rate was cut to 0.5% in March 2009, and has remained there ever since.
The £43bn of losses savers have had to bear, comes from comparing their income before and after the Bank cut rates to 0.5%.
But because savings in banks and building societies are outstripped by mortgages, mortgage borrowers have gained by a wider margin.
They have paid £51bn less in monthly interest, the figures show.
As well as considering the Bank rate, policymakers will also announce a decision on whether or not to put more money into the economy by extending the £200bn quantitative easing (QE) programme.
However, the move could push up the inflation rate, which is already well above target at 4.4%, and put more pressure on household budgets.
Policymakers have come under increased pressure after Chancellor George Osborne admitted on Tuesday that the economy had weakened and that short-term hopes had been revised down in recent weeks.
The latest estimate from the National Institute of Economic and Social Research (NIESR) also suggested that the rate of growth in the UK economy slowed to 0.2% in the period from June to August.
How have low interest rates affected your financial planning? Would you be happy to talk to a BBC journalist? Send us your comments and experience using the form below.
Powered By WizardRSS.com | Full Text RSS Feed | Amazon Plugin | Settlement Statement | WordPress Tutorials