05/03/2009 - Britons feeling 'no better off'
According to a new survey, 44% of Britons claimed they were no better off as a result of the Bank of England's steep cut in interest rates.
Despite the base rate being cut to 1% from 5% since October, just 13% of people claim they are now better off.
The Bank's Monetary Policy Committee is also expected to slash the rate by another 0.5%, as well as announce plans to begin quantitative easing to boost the struggling finance market and try to increase consumer spending.
The majority of people claiming they have benefited from the interest rate cuts are homeowners who have a variable rate or tracker mortgage.
According to market research group Harris Interactive, six out of 10 people with one of these mortgages say they are now better off.
Meanwhile, 74% of people with private investments thought they had lost out, followed by 59% of people who have savings accounts and 58% with private pensions.
Susan Vidler, sector head of financial services at Harris Interactive, said: "Restoring consumer confidence will be a major challenge in the coming months as the UK tries to pull itself out of recession."
Copyright © Press Association 2009
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