Sign in
Sign up

The Bank of England’s interest rate dilemma

Sally

The next interest rate announcement is on 30 April and it’s clear the Bank of England is in a tight spot.

Will they cut interest rates to boost the economy, or hold them steady (or possibly even raise them) to try and get inflation under control?

The reality is that for the pound sterling, it’s a lose-lose scenario. Those holding lump sums or large savings in the bank will continue to see the purchasing power of their savings diminish over time either way. 

By contrast, those who have moved their savings into assets like gold are better positioned to preserve their wealth.

This blog will cover what you need to know about the Bank of England’s next rate cut decision and why the pound sterling is effectively ‘damned if they do, and damned if they don’t’.

Inflation Pressures Haven’t Gone Away

Inflation in the UK is currently around 3% – still significantly above the Bank of England’s 2% target. And the uncomfortable truth is that there are growing signs it could remain elevated.

Ongoing conflicts, particularly in the Middle East, are causing volatility in energy prices globally. Spikes in the price of oil and gas have a ripple effect that impacts the price of everything else, from transport to manufacturing. This ultimately leads to higher everyday prices for consumers.

For the Bank of England, the risk is that cutting rates too soon could push inflation higher at a time when there are already external factors that could ultimately make everything more expensive.

Those saving in pounds have already watched prices climb rapidly in recent years and if the Bank of England cuts rates, it could add fuel to the fire.

Meanwhile, the UK Economy Is Struggling

Growth remains weak, consumer confidence remains low, and businesses are reluctant to borrow, invest or hire staff until interest rates are cut. This has led to increasing pressure on the Bank of England to cut interest rates to stimulate the economy.

Lowering interest rates would provide a short term boost to the UK economy at a time when the labour market is beginning to soften and unemployment is edging higher.

In the midst of this growing pressure to cut rates, if the Bank of England holds them steady or even raises them, it could be a sign that they see inflation as persistent and long term.

In simple terms, whether the Bank tightens or loosens policy, the underlying concern is the same: the purchasing power of the pound is under pressure.

Why This Matters for Savers

For traditional savers or anyone with lump sums held in pounds, it’s a lose-lose scenario.

If interest rates remain high, it’s a signal that elevated inflation is here to stay.

If interest rates are cut, the money supply will increase and the value of the pound will diminish even further.

Either way, the purchasing power of your savings is being eroded.

Why Gold is a Powerful Alternative

Gold is an asset with a limited supply. It can’t be printed out of thin air or inflated away. This is why for thousands of years, it has been used as a store of value during periods of inflation and currency debasement.

And the data supports this:

  • Since 2000, the price of gold in pound sterling has grown by an average of around 12% per year
  • In the last two years alone, the price of gold has nearly doubled

This rapid growth highlights a key point: despite short term fluctuations, the price of gold is proven to grow over the long term.

For TallyMoney customers, this creates a clear advantage.

By holding savings in gold, while still having the flexibility to spend in pounds (or any currency for that matter), Tally customers are better positioned to navigate an environment where:

  • Inflation is persistently high
  • Interest rate policy is uncertain
  • The pound sterling is weakening

Whether rates are held or cut, the underlying challenges remain. Inflation, weak growth, and expanding money supply all point to continued erosion of the pound sterling.

In this environment, the question for savers is simple: how do you protect the purchasing power of your wealth?

For a growing number of people, the answer is clear: own assets. Why? Because over time, the effects of inflation and currency debasement make everything, especially assets with limited supplies, more expensive. Or put another way, it takes more and more pounds to purchase assets the longer you leave it.

And for many, when it comes to building savings, the best asset to own is gold. 

Property can be great for capital gains but as an asset class, it is relatively expensive and slow to sell. Stocks provide dividends but are prone to crashes. The crypto market is volatile and risky.

Gold, on the other hand, is a stable, globally recognised asset that is proven to hold its value during times of inflation and currency debasement. 

And in the digital age, TallyMoney gives you a modern, convenient way to build your savings in real LBMA-accredited gold while retaining the ability to spend and make payments in any currency. You can save in gold, and spend in cash.

Continue Reading

How to beat the hidden tax on your savings

READ ARTICLE

Are your savings working for you, or a bank?

READ ARTICLE

Saving strategies: how often should you save?

READ ARTICLE

Let’s get physical: How much gold bullion and printed fiat currency actually exists?

READ ARTICLE

Why Faster Payments aren’t always so fast

READ ARTICLE

How to get a TallyMoney account

READ ARTICLE

Real World Examples

  1. Fancy a coffee? Use your TallyMoney Mastercard. Boom – paid. (Yes, you’re buying a flat white with gold. How amazing is that?)
  2. Need cash? Use any Mastercard ATM worldwide or spend across the globe. ZERO fees from us, ZERO markup. (When you spend or withdraw, your gold converts instantly at the global spot price. No catches, no hidden charges – just straight-up Mastercard exchange rates. Because your money shouldn’t cost you… more money.)
  3. Want some money back in your bank? Just tap ‘transfer’ in the app. (Though after a while, you might wonder why you’d want to…)

    Zero faff. Zero waiting. Zero fees when you spend tally.

Meet Cameron Parry

Meet the guy who wouldn’t accept being trapped in a ‘heads they win, tales we lose’ government-run monetary system that protects and benefits the financial institutions, to the detriment of the public. Where people’s deposits are constantly at risk, and losing value through inflation caused by central bankers and politicians.

If necessity is the mother of invention, then frustration may be the roommate’s cousin of motivation. In any case, he decided to stop getting mad and start a new monetary system with sound money. Where deposits serve the depositor, where savings build wealth for savers, and transactions are made in a familiar way. And he called it TallyMoney.

TallyMoney: Gold upgraded

With TallyMoney:

  • Your pounds instantly become physical gold (1 tally = 1mg of real gold)
    Stored in Swiss vaults (not under your bed)
  • Fully insured and allocated (actually yours, not a paper promise)
  • Spend it anywhere with your TallyMoney debit Mastercard
  • Transfer back to pounds instantly if needed (but why would you?)

We’re not anti-bank because it’s trendy. We’re anti-bank because the current system is rigged against you. Every day you leave money in a “savings” account, you’re funding their profits while your wealth evaporates.

Enter gold: the original currency

Why gold? It’s value is universally acknowledged.

  • It’s not controlled by any single government
  • It can’t be printed or manufactured
  • It’s actually scarce 
  • It requires effort to extract it 
  • It doesn’t rust, decay, or disappear
  • It has remarkable properties

So while the pound’s lost 50% of its value since 2004, gold’s grown by 146% in the last decade alone. While your bank savings got mugged by inflation, gold owners were laughing all the way to… well, not the bank.

But here’s the rub: Traditional gold ownership is a right pain. Buy physical bars? Prepare for storage fees that’ll make your eyes water, insurance premiums that never end, and a 5-10% haircut when you need to sell. Plus, try buying your weekly shop with a gold ingot.
Paper gold ETFs? They’re classed as Tier 3 assets for a reason – that’s financial speak for “risky as hell.” You don’t own gold, you own a promise. A tradeable IOU. And when everyone wants their gold at once? Good luck with that. So you’re stuffed either way: real gold that’s impossible to use, or fake gold that might not be there when you need it.
Until now.

The truth about inflation

How? Well, when politicians overspend (and they invariably do), they need more money to ‘stimulate the economy’. But raising taxes makes voters angry. So what do they do? They fire up the money printer, and boy do they love to print. To give you a sense of the scale, since 2015 the Bank of England has created £520bn out of thin air through “quantitative easing” (electronic money printing) plus £86bn in physical currency. 

Thing is, more pounds in circulation = each pound is worth less. Think about it: In 2004, £100 could buy you a decent night out, theatre tickets, and a cab home. Today? That same £100 barely covers the theatre tickets. Your money didn’t disappear – it was diluted, like someone’s been topping up your whisky with water when you weren’t looking.

The “2% inflation target” they bang on about? That’s them telling you they plan to steal 2% of your wealth every single year. And calling it healthy.

How TallyMoney actually works?

  1. First things first: we’ve got actual gold bullion* (none of that paper-promise nonsense) locked up tight in a Brinks vault in Switzerland. Yeah, those Brinks – the security legends who’ve been protecting valuables since Queen Victoria was on the throne.
  2. You send your pounds to your TallyMoney account (bye-bye, inflation-addicted fiat!).
  3. We use the global gold spot price to instantly turn your currency into its weight in gold. No hidden or fuzzy exchange rates, just the real market gold price + 1.49% gold purchase fee.
  4. Each milligram of your physical gold = 1 tally (we keep it decimal because no one wants to faff about with troy ounces – the specific unit for measuring gold).
  5. That’s it! Your app shows your balance in tally, but remember – those aren’t just numbers on a screen. That’s your solid gold, in milligrams, sitting pretty in Switzerland.
  6. You can now save and spend your gold as you see fit.

*All Tally gold is sourced from LBMA-accredited providers because we’re rebels with a cause… and standards. Instead of tracking the gold price per kg, your money is directly converted based on the real-time global gold spot price.

TallyMoney is real money

  1. Store of value
    Your gold sits in a Swiss vault (not getting ‘quantitatively eased’ away)
    Evidenced by 5,000 years of holding its value
    Can’t be inflated by government whim and fingers on the ‘currency print’ button
  2. Medium of exchange
    Spendable at 150+ million shops worldwide (thanks, Mastercard)
    Currency converts instantly at market rates (no sneaky margins)
    Moves as quickly as sending a text 
  3. Unit of account
    1 tally = 1mg of gold. Simple
    Stable enough to actually plan your future with
    Speaks every currency’s language (gold’s kind of a big deal everywhere)

This is why TallyMoney is so much more than just owning Gold – it’s a real financial revolution. We’re not just helping you own gold; we’re bringing back what money was always meant to be. Sound Money for a Brighter Future. Because your hard work and wealth deserve better than being slowly robbed by external forces.

We want you to have real money

  1. A store of value:
    Keeps its value over time
    Insulated from devaluation/inflation
    Actually rare and can’t be created out of thin air
  2. Medium of exchange:
    Easy to use for everyday transactions
    Widely accepted
    Can be transferred efficiently
  3. Unit of account:
    Works like a proper value-measuring stick (imagine if your ruler shrunk every year – mad, right?)
    Splits nicely into useful bits
    Reliable enough to plan your future with

Why does this matter? Because your hard work deserves better than being turned into monopoly money by someone else’s actions. Every time your currency loses value (inflation) its stealing from your past work, which harms your present savings, and your future dreams.