by Calculated Risk on 9/27/2010 10:28:00 PM

From the Telegraph: Savers told to stop moaning and start spending

[Bank of England deputy governor Charles Bean said] "Savers shouldn't necessarily expect to be able to live just off their income in times when interest rates are low. It may make sense for them to eat into their capital a bit."
...
Mr Bean said that encouraging Britons to spend was one reason why the Bank had cut interest rates.

In the U.K., savers are receiving about £18 billion a year less in interest. In the U.S., using the monthly personal interest income data from the BEA, interest income is off about $143 billion from the peak - and falling ...