According to new research, the number of households who are saving more is increasing. This trend shows that the high interest rate is having a positive effect for savers.
The research also shows that people were finding that they had money to save, once all the bills had been paid, and not struggling to make ends meet. Property is still the preferred investment option, although the mood to save is on the increase.
Our view
These results come as no surprise to anyone. When rates are high we spend less and save more. The Bank of England move is having the desired effect. The key is to turn it the other way to ensure the economy does not cool down to much and dip into recession.