The building society trade association yesterday called for the Bank of England to resist the temptation of cutting interest rates on Thursday as doing so would penalise savers and pensioners, while borrowers are more preoccupied with loan availability the level of interest payments.

The Bank of England is expected to cut interest rates by a half a percentage point to 1 per cent this week, in an effort to relieve the worsening economy. But successive rate cuts since last year, while aimed at benefiting borrowers, have left savers earning less and less on their cash.

The Independent