The Bank of England's Monetary Policy Committee (MPC) has voted to maintain Bank base rate at 5.25%.
"In addition, recent turmoil in financial markets has prompted some reassessment of the global growth outlook, leading to some downward revisions to UK rate forecasts. Furthermore, data from the UK economy has been mixed, with ongoing strength in the housing market but disappointment on the High Street, with retail sales falling at the sharpest pace for four years. The forecasts from the Bank show that interest rates will likely need to be raised by another quarter point in order to push rates of inflation below 2% on the Bank's horizon. Market expectation is that rates will be hiked by another quarter point by the middle of the year." "Similarly to the Bank of England, the European Central Bank did not surprise market expectations today. The ECB hiked interest rates for the seventh time in the past eighteen months, to 3.75 per cent. Markets were closely watching commentary from the ECB to gauge the likelihood of future rises. In the event, the description of current policy as 'accommodative' suggests that further hikes are on the agenda in coming months."
Our weekly heads-up for advisers
Former Neptune manager
27,000 transfers looked at
Consider risk capacity