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Brits' Raid on Savings Raises Questions for BOE
The U.K. consumer is saving less. But it's not what you think. The ratio of savings to income is hovering around a 50-year low. It hasn't been this small since President John F. Kennedy told residents of Berlin that he was a jam doughnut. A lower ratio may reflect either a fall in income or a rise in expenditure, or some combination of the two. Bank of England policy makers took note in their interest-rate statement Thursday. At first blush, this might not bode well for the outlook for consumption, which has been keeping the economy chugging along. The drop in savings might presage a decline in spending -- unless ... (full story)