Had we joined the Euro in 2004 would we be in such a pickle?
I doubt it.... the Tory's wanted to keep Grandma on bits of paper and the English pound. Its not so sound. Labour buckled for fear of a revolt ... 55% of the population wanted to keep the pound so there is little excuse to moan.

Lang, London, UK

I think this is not going to solve the problem. The issues we struggle with in today's economy are inherently behavioral. What we really have to change is the pricing system in general, because the UK (and London in particular) is still bizarrely expensive.

Yuka Sumimoto, London,

Savers are paying the ultimate price by the government trying to stoke up the economy prior to the next election.

SRB, Abergele, UK

It's hardly worth even saving these days with interest rates so low. My plan now is to close my uk investments and buy a luxury classic car, store it for a year then sell it on for a profit which will be considerably greater than if I had left my investments in uk banks.

john smith, liverpool, uk

What about the savers who have been sensible not to borrow beyond their means. We are now being penalised for those who have over-stretched. So much for being sensible I have probably lost a quarter of my money which I conscientiously put away.

Maggie, Mid Wales, UK

I was made redundant. Due to inflation and the wonderfully benevolent Mr Brown, (ok Darling), forcing interest rates down, I am now losing money faster on my savings that I could save it when I was earning. Britain! And they say we should save more! Answer? Have less than 16K and get into debt.

Ross Grafton, Horsham,

The Central Banks will lower raters but they won't be passed to the public by the banks. The banks need money so they will make them through the difference between the Central Bank rate and the actual lending rate. The Free Market control Mechanism is bust. Keynesian Economics anyone?

Andreas Andreou, Cyprus,

As a saver, I shall be looking for another home for my money rather than banks that pay less than the rate of inflation and tax. I won't be alone. How will the banks react to an outflow of deposits?

Keith, Thames Ditton,

Spend now pay later has always been good advice and there are many property millionairs out there to prove it. Lots of people have job security - government employees, supermarket staff, farmers, etc. Now is the time to make a mint for the future by buying property. Ten years will qudruple their £s.

paul, norfolk,

Richard -With inflation, interest rates are effectively negative already.The government also sees fit to add tax to our losses. If I am forced to spend my life savings against my will, what do I buy? There's only so many TVs I can watch, clothes I can wear. Then look forward to an old age in poverty

Frank Hegarty, Farnborough, UK

All Brown seems able to do is keep on taxing, be they retired or savers he doesn't care who.

Jason, London, UK

Euro ,here we come ,with an 80% parity.so much for equilibrium.We lose again !

Derek , Huntingdon, England

This is not about deflation or recession. These rates are being made to keep the banks afloat. Savings will return very little and borrowers will be asked to pay 300% plus more than the savers receive.

The logic is that the debtors won't default and the savers have two choices, spend or accept it.

Bob Travels, Stevenage,

is this creating the same situation as america? unrealistic low rates that people sign up to and then in the future the interest rates go up to an unaffordable level - what happens then?
There must be a minium period that these rates will apply overwise there will be more repossessions again

adrian, edinburgh,

Not only savers will be punished by this. I chose the responsible path of fixing my mortgage rates, rather than gambling the security of my mortgage repayments. I will continue to pay this rate for another year whilst the gamblers make hay. A VAT cut of 2% is a joke. £5 off a TV doesn't help.

Stevie, London,

What has the Bank of England cutting interest rates got to do with Gordon Brown ? I know news probably travels slowly to Spain - but the BoE has been independant of the Government since 1997.

Keep cutting the interest rate I say - my mortgage is coming down nicely ;-)

Bill Stone, Derby , Good old England

Near zero interest rates are a distinct possibility towards the end of next year. But it'll be like that all over the world. Policymakers out of control. Real interest rates for borrowers will remain at 5-6%.

Michael, West Midlands,

Well, Gordon Brown could still have another trick up his sleeve to promote spending. Reduce the interest rate below zero to penalise the prudent people who have saved for the future and force them to spend their savings. I wouldn't put it past him!!!

Richard, Alicante, Spain

If banks lend at a rate lower than inflation, then in real terms they lose money. All the interest drop will do is make banks lose money, and punish savers who were sensible enough not to get into unmanageable debt.

Tim, Exeter, UK