Oil Prices Down to $100 a barrel

10/09/2008 by bill.

Falling oil prices are not only important to us in terms of the cost of filling our cars but should help underpin lower UK inflation rates and therefore interest rates. Oil prices also impact on food prices and on every thing else we buy. Even home energy prices benefit because gas prices are linked to oil prices.

Provided world oil prices do not soar again, economists are forecasting that UK inflation will fall back to around 2% pa in 2009, this should mean significant cuts in interest rates over the next few months. This will be welcomed by borrowers especially those seeking to get a mortgage for the first time but savers will suffer and now may be a good time to look at fixed rate savings accounts, ISAs and savings bonds.

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Posted in Inflation, Oil prices, Interest rates, Energy bills, Savings | Print | 1 Comment »