What an interest rate hike in February would mean for markets

Rate rise could bring end to QE

clock • 4 min read
Another interest rate hike expected in February

Another interest rate hike expected in February

With the UK’s current interest rate at 25bp, brought in amid uncertainty in December, the market is already pricing in a further raise as soon as February, which could formally bring about an end to the UK’s quantitative easing programme while making the Bank of England ‘credible’ again from a communications perspective.

Craig Inches, head of rates and cash at Royal London Asset Management, highlighted that the market is currently 80% priced for a UK interest rate hike to 0.5% in February. Driving forces behind another...

To continue reading this article...

Join Investment week

  • 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


More on Markets

The recommendations come as the UK asset management sector looks to be more competitive in the wake of Brexit.

IIMI: Four key ways to improve UK asset management sector

Wake of Brexit

Melanie Boulton
clock 25 May 2022 • 2 min read
Luke Hickmore, investment director fixed income, abrdn

Jubilee economics - how does 1952 compare to 2022?

Some similarities

Luke Hickmore
clock 24 May 2022 • 4 min read
Market Movers Blog: US inflation dips slightly to 8.3%

Market Movers Blog: UK Government borrowing reaches historic high in April

Latest news and analysis

Investment Week
clock 24 May 2022 • 1 min read