Bank of England delivers 'relatively dovish message' alongside rate hike

Expected to 'proceed with caution'

Elliot Gulliver-Needham
clock • 4 min read

The Bank of England raised interest rates by 0.25 percentage points on Thursday, with analysts noting the bank’s dovish language, implying a cautious approach going forward.

Caspar Rock, CIO at Cazenove Capital, said that "amid inflation forecasts of 7.5% by spring, it comes with little surprise" that the bank issued the hike. However, he said that "looking forward, the prospects for further rate rises are likely to depend on the extent to which oil price rises feed through to other areas of the economy, particularly wages." Rob Clarry, investment strategist at Tilney Smith & Williamson, said that the bank "faces a difficult balancing act" between growth and inflation but argued that increasing labour market tightening and elevated energy prices pushed th...

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

Watch Professional Adviser's Working Lunch with Baillie Gifford - Enduring Growth in a Changing World

Watch Professional Adviser's Working Lunch with Baillie Gifford - Enduring Growth in a Changing World

Catch up on the discussion

Professional Adviser
clock 21 August 2025 • 1 min read
PA Awards 2025: Why MyFolio Index came out top as Best Risk Targeted Range of Funds

PA Awards 2025: Why MyFolio Index came out top as Best Risk Targeted Range of Funds

Aberdeen Investments Senior Investment Director and Head of Managed & Model Solutions Justin Jones shares what sets MyFolio Index apart following its Best Risk Targeted Range of Funds award win at the Professional Adviser Awards 2025.

Professional Adviser
clock 19 August 2025 • 3 min read
Woodford IM hits back at FCA's enforcement action including £46m in fines

Woodford IM hits back at FCA's enforcement action including £46m in fines

WIM said it 'strongly disagrees' with the regulator's decision

Cristian Angeloni
clock 05 August 2025 • 3 min read