Savers at risk as rates edge lower

ECB rate cuts would help borrowers, but savers face lower returns anyway, writes Emma Kennedy, Personal Finance Correspondent.

5th May, 2012
Mario Draghi, president, European Central Bank: still a prevailing uncertainty in the eurozone. Photo: Bloomberg

The possibility of further easing by the European Central Bank (ECB) will mean a shift in the interest rate environment for savers, investors, borrowers and lenders alike.

Markets move on perception, and so any hint that rates might face the chop will mean changes both in demand for financial products and in how they are priced.

In particular, the trend towards easing rates and the unusually high rates which have been paid to savers here...

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