Rate raise with a 'hawkish twist'? Reaction to BoE's decision

Inflation expected to rise to 6%

Elliot Gulliver-Needham
clock • 4 min read

The Bank of England’s Monetary Policy Committee voted by a majority of five to four to raise interest rates from 0.25% to 0.5% on Thursday (5 February), in its first back-to-back increase since 2004.

While the hike had been overwhelmingly expected by markets, it was "arguably a sideshow compared to the details of the meeting which revealed there were four dissenters voting for a 50bps hike instead of just 25bps," according to Georgina Taylor, multi-asset fund manager at Invesco. The unexpected near miss of a hike to 0.75% was described as a "hawkish twist" by Russell Silberston, strategist for Ninety One. The hike had been expected by analysts due to the UK's high level of inflation, which the bank said last Thursday is expected to climb to 6% in February and March before peaking ...

To continue reading this article...

Join Professional Adviser for free

  • 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

Join

 

Already a Professional Adviser member?

Login

More on Investment

'It's been frantic – in a good way': Orbis' Matt Spencer on maintaining momentum

'It's been frantic – in a good way': Orbis' Matt Spencer on maintaining momentum

Advisers in the UK are ‘exceptionally high quality’

Jenna Brown
clock 25 November 2025 • 8 min read
Why 'bubble talk' doesn't always burst markets

Why 'bubble talk' doesn't always burst markets

What’s really driving recent returns?

Eleanor Ingilby
clock 20 November 2025 • 4 min read
Consultancy launches to provide IFAs with 'robust' investment processes

Consultancy launches to provide IFAs with 'robust' investment processes

Sheridan Admans launches Infundly

Isabel Baxter
clock 06 November 2025 • 1 min read