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His comments are based on the low interest rates. If you have cash in the bank, your returns are zero, so it drives people to put money into other investment vehicles to get a better return on their money. It's how controling interest rates work as a monetary policy at a macro level.
Personal circumstances dictate what you actually do.
Aroogah
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?!
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...