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

NextWealth MD Hopkins on staying ahead of advice sector changes, data challenges and flattening MPS fees

NextWealth MD Hopkins on staying ahead of advice sector changes, data challenges and flattening MPS fees

Making technology work better

Katrina Lloyd
clock 03 July 2025 • 9 min read
IFAs look to boost clients' private markets exposure

IFAs look to boost clients' private markets exposure

Expect increase in stock market volatility

Jen Frost
clock 02 July 2025 • 2 min read
Winds of change: Private markets access for retail investors

Winds of change: Private markets access for retail investors

Investing in LTAFs, accessibility aside, needs careful consideration

Dorian Hughes
clock 02 July 2025 • 5 min read