Assess the impact of low interest rates on the distribution of income.

Winners are borrowers as they have less interest to pay. Borrowers are likely to be low income households on low incomes struggling to survive – however high income households may also borrow money e.g. mortgages to buy houses in London and the South East.

Savers  are losers e.g. rich pensioners – however low income household in temporary work may also be saving as they fear their ability to survive if they become unemployed.

So overall income inequality may be reduced.