The “paralysed” Bank of England (BoE) remained in “wait-and-see mode” as it delayed a potential interest rate cut until after Brexit negotiations conclude.
The Bank kept rates at 0.1% on Thursday (17 December), mirroring Wednesday's move from the US Federal Reserve, as it awaits news of whether or not the UK will secure a trade deal with the EU. Markets continue to price in a one-in-four chance of a 2021 cut, which would take the Bank Rate into negative territory for the first time, but for now Quilter Investors' Hinesh Patel said the Bank was "paralysed to the outcome of a Brexit deal". Patel added the Bank was "simply in wait and see mode before responding to any further economic threats", adding: "For just now they remain as accommo...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- 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
