However, it is important to remember that markets always think forward, and that the pendulum nearly always swings much further than it should in reaction to events. I believe markets have further to fall from current levels as the global economic realities bite. I said last month that the third quarter will be the time to 'buy the market'. If that view changes, you will be the first to know. Low inflation softens the blow, but falling interest rates are set to hit income-hungry savers hard.
Futures markets have yet to price in the prospect of significantly lower rates.
That means now might be a good time to fix at the higher rates on offer. All three deals offer monthly interest. At Money Observer's 250th issue milestone, I would have liked to strike a more positive tone about short-term prospects for savers and investors. I am confident that the former will outnumber the latter in our next 250 issues - and we all hope you will be with us for them.