Gosling's Grouse: Why investors need to challenge the consensus

Priced in rate cut

On the day of the last Monetary Policy Committee (MPC) meeting, the main news channels were reporting the Bank of England was likely to cut interest rates. As the day went on, the tone and language implied it was a certainty we would get a first rate change in over seven years.

It was so much of a consensus that parts of the market had even priced in the change, even though it had not happened. All of this came as a result of governor Mark Carney's post-Brexit comments about how the Bank of England was ready to take action if the economy needed it, either by another dose of QE, some other form of stimulus, or a rate cut. BoE governor Carney hints at summer rate cut Most people and the markets jumped on the rate cut possibility which neatly came only two weeks after the Brexit vote. In no time at all, a rate cut was the consensus - and of course as we all ...