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David Cameron says it would be 'lovely' if interest rates could remain at current low level

Homeowners have found their mortgage repayments lower and more affordable, but pensioners have seen their savings dip in value

Pavan Amara
Thursday 30 October 2014 21:22 EDT
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David Cameron said it would be “lovely” if they could “forever” stay at the emergency low
David Cameron said it would be “lovely” if they could “forever” stay at the emergency low (Getty Images)

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David Cameron has said he wants interest rates to remain at a historic low, because it would make life easier for homeowners.

The Prime Minister said it would be “lovely” if they could “forever” stay at the emergency low they have been at since 2009.

The 0.5 per cent interest rate, which is set by the Bank of England, has meant homeowners find their mortgage repayments lower and more affordable, but pensioners have seen their savings dip in value.

The Daily Telegraph reported that Mr Cameron claimed the rate was “good news” during a question and answer session with call centre workers in Runcorn, Cheshire.

The Prime Minister is reported to have said: “The Bank of England is totally independent. I can't tell them what to do. That's annoying, obviously, but it would be lovely to say can we have low interest rates forever.

“But it would be disastrous if I could tell them what to do, because politicians interfering in interest rates is not a good thing. You want to make sure the Bank of England sets interest rates to keep the economy on an even keel, keep inflation low and all the rest of it. But the good news is interest rates are low and that's helped people to buy the homes they can afford.”

He also added that new mortgage checks on people’s ability to pay a mortgage should there be a rate rise were “quite tough.”

This week, the Bank of England’s Deputy Governor Sir John Cunliffe, said interest rates would remain low for “a longer period than previously thought.”

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