Morning Line: Why the Bank of England’s decisions still matter to you

"we may all live to regret the decision to keep interest rates at record lows despite above-target inflation."

Oh but I am regretting the decision, as are millions of other savers. The reason for the decision is in part that the Bank, as does Downing Street, knows that as we have money and will have to reduce the savings, in many instances, to maintain a near semblance of our previous lifestyle, reduced, so that borrowers, many of whom can afford paying higher rates, so that a few (quite a large number, but small in the context of the number of borrowers) can continue reasonable lifestyle and to save the banks from losses when some of those would default on their loans and lead to more losses for the banks bad decision to lend those few money if market rates were applied to the loans..

There will be in those numbers those who were a solid risk, but that a change of circumstance (loss of job) made them default. That is life, and it ain't never fair, something I oft told my kids.

It is the savers who are being whipped, punished, for the wrong actions of others.

Now if the Decision makers were also being whipped by reducing their pay by the proportionate amount of the reduced rates for savers, they would swiftly restore proper rates to market levels to get their 'rewards'.

What are proper rates? Debt and investment is being reduced as a result of lower demand for funds - seems working properly?