The Bank of England confounded the financial pundits yesterday, by hiking interest rates by 0.25%.
The base rate now stands at 5.25%.
It goes without saying that those people who have debts, loans and mortgages will feel the negative impacts of this rate hike immediately. However, those people with savings accounts will not feel the positive effects for some time (if at all).
Why is this?
Simple, the banks and loan companies will use the margin between borrowing and savings rates to squeeze every single penny from their hapless customers who hold debts or savings accounts with them.
Remember banks and loan companies are on this earth to make money, not to help people.