The Bank of England is considering changing its base interest rate of 0.5% to a negative figure. The idea is effectively a fee on commercial banks leaving money sat in the central bank, and should persuade them to lend more money to stimulate economic growth.
People looking for a decent mortgage rate are in luck (rates could be lowered even more), but on the other hand savers will take yet another hit to the amount of interest they can earn. It doesn't mean that savers will actually be charged interest, but with interest rates so low already inflation is taking big chunks out of their hard-earned cash.
I guess anything that stimulates the economy has to be a good thing, but I worry about the impact this could have on banks (for our sakes, not theirs!). If they start to feel the pressure too much, they might pass on an even bigger hit to their customers. I for one don't want to see current account fees or even lower interest rates for savings! Don't forget, banks are out to make money, and if they can't make it in interest they'll make it from us!
The jury's out on whether or not negative interest rates will actually be brought in. What do you think about this? Will you benefit from cheaper loans (mortgage refinancing, for example), or will your savings suffer instead?