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Are savers being penalised for being frugal?

A further interest rate cut of one percent point yesterday has brought joy to thousands of borrowers with big debts or mortgages to pay off.

But the move is a kick in the teeth to Kent's savers, who will now be getting very little interest on the money in the bank.

Pensioners are some of the worst affected, with private schemes hit heavily by the problems in the stock markets and several successive interest cuts.

It is hoped that yesterday's move by the Bank of England, which followed an unprecedented cut last month by 1.5 percent, will stimulate the economy.

Lower rates on borrowing should mean more money for businesses to grow, more money into people's pockets for them to spend and more money available for people to get mortgages.

What do you think? Is it fair on people who have saved and behaved responsibly with their cash? Join our online debate below.

The Kent Messenger Group's Business Editor Trevor Sturgess warns it all depends on the banks passing on the cuts to businesses and borrowers though.

He said: "Businesses need money to expand, grow and survive. They're finding that the previous interest cuts haven't been coming through and that the banks have actually been restricting any further lending. So, it's important that this money comes through because these businesses are already going through difficult times.

"The banks now need to both ease the purse strings and pass on the rate for this to have any effect."

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