UK interest rates have been kept unchanged at their record low of 0.5% by the Bank of England.
Outlining the Bank of England revised forward guidance policy, the governor said ;
"Rates are then projected to rise to 2% by early 2017. Beyond 2017, the message from the Bank is that 'even when the economy has returned to normal... the appropriate level of Bank rate is likely to be materially below the 5% level set on average by the [Bank] prior to the crisis'"
Low expectations: Base rate is seen rising sooner than forecast last summer by the money markets, but the bank of England said it will rise gradually and is unlikely to return to 5 per cent for a long time.
One group undeniably hit very hard by Funding for Lending has been savers. Returns on savings accounts have dived since its launch in a race to the bottom that has seen big cuts in the best deals on offer.
The best easy access savings rate now stands at just 1.5 per cent, whereas before the launch of Funding for Lending savers could get between 2.5 per cent and 3 per cent.
Mind the gap: How base rate and inflation have moved over the past 24 years - the dramatic slashing of rates since the financial crisis shows how far from normal we are.