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That is right yes. But in the medium to long term they will need to rise. The UK (and particularly because if its economic makeup) will need to work out how it moves out of a debt fuelled, cheap credit economy. The UK has so little resistance to further shock now, either centrally or distributed thorough its citizens.
There's currently no benefit for anyone to have savings and operate their lives with any level of prudence. And the govt will need people to do this in the long-term so that the burden on state is less severe than our current trajectory dictates.
I think taking a 2/3/5 year fixed is all the same really and would expect this to change in the following decade and for the 40-50 years after.
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I'm no economist so I'll take your word for it on the need for a rise medium to long term, and in terms of mortgages fixed obviously makes sense anyway as it's a way of reducing risk in a risky world. If you fix your mortgage is not going to reduce in any significant way as you said.
However, are you sure about this?!
There's currently no benefit for anyone to have savings and operate their lives with any level of prudence.
Many jobs are at risk at the moment. Surely that's a good reason to have savings as a safety net? The normal advice is at least three months' worth of outgoings. It's not like you can rely on the welfare state any more...
Fox
I thought the consensus among economists at the moment is that the only way is down given the recession and mass unemployment that's coming? Surely raising them would slow growth which is the last thing the Bank of England would want to do?
There has been a short term rise fueled by rising petrol prices (after they dropped during lockdown), food costs increasing and frantic PPE buying but there's currently speculation that the BoE might take us into negative territory...