Tilney Bestinvest: BoE faces 'political backlash' if next round of stimulus fails

Cental banks' credibility could be called into question

Laura Dew
clock • 2 min read

The Bank of England could face "political attack" in the next few years, as investors become increasingly dissatisfied with the stimulant effects of monetary policy on the economy, according to Tilney Bestinvest's CIO Gareth Lewis.

Lewis warned current monetary policy has failed to secure an "equitable and sustainable recovery" and has "accelerated the pattern of wealth inequality", which has favoured the so-called wealthy 1%. As a result, the credibility of central banks has been called into question, potentially leading to "political disaffection" and intervention. The Bank of England has indicated it will look to cut interest rates, after holding them at 0.5% for over eight years, or introduce further quantitative easing this summer in light of the volatility following the Brexit vote. Lewis said: "We will...

To continue reading this article...

Join Professional Adviser

  • Unlimited access to real-time news, industry insights and market intelligence.
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters.
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection.
  • Members-only access to the editor’s weekly Friday commentary
 Be the first to hear about our events and awards programmes.



Already a Professional Adviser member?


More on Economics / Markets

The UK economy shrank by 0.5% in July, worse than analysts had predicted and continuing a trend of weak economic growth in the UK.

UK economy to decline in 2023 and 2024 as US and eurozone grow

Think tank predicts US and European GDP to grow while UK declines

Valeria Martinez
clock 28 September 2023 • 2 min read
More than half (57%) of UK investors said they were confident the worst of the economic turbulence from the past 18 months has now passed.

Investors still cautious despite predicting economic stability

'There is a sense that 2024 will bring a little more calm'

Laura Miller
clock 26 September 2023 • 1 min read
Partner Insight: Investor Archetypes

Partner Insight: Investor Archetypes

In this article, we outline four key personality archetypes that advisers will recognise among their client bases. We then explain how advisers can tailor their guidance to address the biases of each key archetype.

Embark Investments
clock 26 September 2023 • 7 min read