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ABI comments on Bank of England interest rate cut

Commenting on the Bank of England’s decision to cut interest rates to 0.25% and introduce £60bn worth of Quantitative Easing measures, Yvonne Braun, ABI Director of Policy, Long-Term Savings and Protection, said:

Yvonne Braun

"Today’s decision will be disappointing news for customers looking to buy an annuity. While we recognise there are wider economic judgements underlying this decision, continued low interest rates and sustained quantitative easing are the main factors keeping annuity rates low. This further drop of the interest rate to unprecedented low levels and the additional injection of quantitative easing are likely to put downward pressure on annuity rates."

Last updated 15/11/2016