'A tough call': Bank of England dovish move signals 'higher for longer' rates policy

‘Good chance’ of peak rates

Valeria Martinez
clock • 3 min read

The Bank of England’s decision to leave interest rates unchanged signalled the hiking cycle may be coming to an end, but experts believe the dovish move signals a ‘higher for longer’ rates policy.

For the first time in almost two years, the BoE opted to leave borrowing costs at 5.25% today (21 September), while warning that rates will remain high to tackle inflation. The committee's decision was a close call, with five voting to pause, while four voted in favour of a 25bps hike.  "Enough voters were either satisfied that inflation will not prove to be overly sticky or were concerned enough about downside risks to believe that a pause was warranted despite still high levels of inflation," said Oliver Blackbourn, portfolio manager at Janus Henderson. Investors had widely predicte...

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


More on UK