BoE interest rate decision comment: “…we believe a period of interest rate hikes lies ahead for the UK.”

by | May 10, 2018

Share this article

Facebook Open Graph

Alex Brandreth, Deputy CIO at Brown Shipley, said: “While interest rates remain unchanged, it does look like policy direction is going to change in the near future and we believe a period of interest rate hikes lies ahead for the UK. The current backdrop of global growth is the most synchronised it has been for almost ten years and the subsequent spill over from this will inevitably affect the UK economy.

“Those looking for interest rate movements should point their gaze to August and November as these meetings are accompanied by the quarterly inflation report. November seems a particularly sensible month to move as we’ll have found out the decision on the UK’s divorce settlement from the European Union by October and the Bank can make any decisions with this in mind.

“Six years into the current economic cycle, we are arguably closer to the end than the beginning and when the eventual slowdown does come it is important that the Bank of England has sufficient room to cut interest rates in order to stimulate the economy. With rates still rooted at emergency levels, this is one of the challenges faced by the Bank and how it chooses to deal with this will be key to the success of the UK economy in coming years.”

 
 

Share this article

Related articles

Invesco: When will central banks cut interest rates?

Invesco: When will central banks cut interest rates?

Written by Kristina Hooper, Chief Global Market Strategist, Invesco Key Takeaways: When will cuts start? Perceptions change with each new data point and each new comment from central bankers. I believe June is the month to watch. The UK could go first. I expect the US...

Sign up to the IFA Magazine Newsletter

Trending articles

IFA Talk logo

IFA Talk is our flagship podcast, that fits perfectly into your busy life, bringing the latest insight, analysis, news and interviews to you, wherever you are.

IFA Talk Podcast - listen to the latest episode

x