BoE makes historic 75 basis point rate hike in largest leap since 1989

UK to experience the highest interest rates since the GFC

Elliot Gulliver-Needham
clock • 1 min read

The Bank of England (BoE) has made its largest rate hike since 1989, hiking interest rates by 0.75%.

The historic rise - predicted by many advisers - brings interest rates to 3%, their highest since the global financial crisis in 2008. The central bank's monetary policy committee (MPC) today (3 November) voted seven to two to hike rates, with one member voting to hike rates by 0.5% and one voting to hike rates by just 0.25%. The report from the MPC warned of a "very challenging outlook" for the UK economy, adding that it currently forecasts a prolonged recession. Inflation rates are now expected to peak at about 11% this quarter, which is slightly lower than what had been projecte...

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

Far from the Madding Crowd: An investment moment in time

Far from the Madding Crowd: An investment moment in time

'Our hunt for undervalued shares takes us away from the crowd'

Ben Preston
clock 23 February 2024 • 3 min read
Abrdn debuts exclusive MPS with BoE base rate aligned return aim

Abrdn debuts exclusive MPS with BoE base rate aligned return aim

‘We have spent a lot of time talking to advisers about solutions’

Hope Coumbe
clock 21 February 2024 • 1 min read
Socially responsible investing index-based MPS range hits market

Socially responsible investing index-based MPS range hits market

Ebi Portfolios teams up with European asset management giant Amundi

Hope Coumbe
clock 20 February 2024 • 1 min read