BoE rate hike 'not cause for concern' for occupational pensions

Rates rise to 3% yesterday was the biggest single increase in 33 years

Holly Roach
clock • 3 min read

The workplace pensions industry has argued the 0.75% rise in interest rates from the Bank of England (BoE) yesterday (3 November) should “not be too much cause for concern” for schemes but fears of further increases loom.

The historic hike to 3% follows much financial market speculation following the disastrous Mini Budget in September and the increasing economic uncertainties over the last few years. However, the industry is not offering too much concern for the time being. Hymans Robertson co-head of defined benefit (DB) investment Elaine Torry said for schemes, the increase in short-dated rates "in isolation should not be too much cause for concern". However, she warned the rationale for the increase, coupled with other upcoming fiscal announcements "could cause a ripple effect up the yield curve...

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