Buxton: November or bust for pre-election rate rise

clock

The Bank of England will hold off on hiking rates for six months if it does not act by November, leaving a "clear run" for investors until the general election, Richard Buxton has predicted.

Minutes from August’s Monetary Policy Committee meeting, released last week, showed two members voted for a rate hike – the first such move in over three years. Since March this year, the consensus view has been for rates to go up in Q1 2015, and data this month showing CPI inflation fell from 1.9% to 1.6% in the year to July seems to support this view. One national newspaper last weekend claimed there is a ‘pact’ between Governor Mark Carney and Chancellor George Osborne to keep rates on hold before the election. The story was swiftly denied by officials, but Old Mutual Global Invest...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Investment

Partner Content: Is the interest rate descent the time to harvest bonds?

Partner Content: Is the interest rate descent the time to harvest bonds?

Markets expect interest rates to fall this year, offering investors the strongest opportunity for fixed income seen for a long time. Watch this video podcast to learn how best to harvest this exciting opportunity.

Sarka Halas
clock 28 March 2024 • 1 min read
Partner Insight: How effective are impact investments?

Partner Insight: How effective are impact investments?

Impact investing has transformed over the past decade, giving investors the opportunity to pursue both financial returns and social and environmental outcomes.

Sarka Halas
clock 27 March 2024 • 2 min read
Partner Insight: High-yield investors should keep a close eye on the default cycle

Partner Insight: High-yield investors should keep a close eye on the default cycle

As central banks start to think about cutting interest rates, forecasts for a peak in credit default rates are not far behind — and could happen sooner than expected, says Wellington Management’s Alex King.

Sarka Halas
clock 27 March 2024 • 2 min read
Trustpilot