Interest rates are on hold for now, but it's bad news for Baby Boomer Brexiters if they head down

Low interest rates favour the young, as borrowers, but a future cut will still come as little comfort in the midst of a cratering economy

Mark Carney and the MPC have kept rates on hold, but a cut may be coming (Reuters)

In the days leading up to the EU referendum I wrote a piece urging a Remain vote, and suggesting that if the Baby Boomers ended up forcing a Brexit they would be delivering a slap to the faces of their Millennial grandchildren.

Now, I was dealing in generalisations. There are Millennials who voted out, and a lot of their grandparents (including I’m proud to say my children’s grandmother) who voted in.

But from a generational perspective the point remains valid, because that’s just what the Boomers, as group, did. Free higher education, copper bottomed pensions, cheap housing, and so on. They’ve have had a great ride and they’ve capped it by kicking their inheritors in the teeth.

But will they be so pleased with the result of their decision from an economic perspective when it comes to their personal finances? Well that’s an interesting question, isn’t it.

The Boomers are now of the age where they are either saving or seeking income from their past savings. The Bank of England decided to keep interest rates on hold this time around, and decisively, proving the market wrong. I’m not as convinced that we will see a cut next time around as some are: weak pound, imports get more expensive, hello inflation.

But lots of people think otherwise and they have good reasons to. Economic growth is going to seize up thanks to the “out” vote, not to mention the crazy cabinet reshuffle instituted by new Prime Minister Theresa May in its wake.

When the Bank of England has more data it may very well choose to act by cutting rates in an attempt to stimulate a cratering economy.

An other cut would make for even cheaper borrowing (especially for those on tracker mortgages), and will certainly more pain for savers who’ll be lucky to get any yield at all on their capital.

From a generational perspective borrowers - primarily the young - will be happy, savers - such as their grandparents - will be miserable and its a mixed picture for we Generation Xers in the middle (plus ca change).

Millennials could be forgiven for indulging in a little schadenfreude at this point. But they’ve probably got rather bigger concerns.