BoE Comment - Brexit uncertainty and low wage growth will keep rates on hold
03 August 2017
Commenting on today’s Bank of England announcement, Ian Kernohan, Economist at Royal London Asset Management, said:
“As expected, the Bank of England kept interest rates on hold, although there was some market nervousness about how many members would decide to vote in favour of a hike. Given the recent run of economic data, the Bank have had to downgrade GDP growth and wage growth forecasts.
“The MPC have kept the window open for an earlier than expected interest rate hike. However we still think interest rates will remain on hold until there are clearer signs of a pick-up in wage growth and we get some visibility on the likely impact of Brexit on the economy.”
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Established in 1988, Royal London Asset Management (RLAM) is one of the UK's leading fund management companies, providing investment management solutions to both wholesale and institutional clients such as not-for-profit organisations, local authorities and the insurance sector.
RLAM manages £104.5 billion of assets and employs 86 investment professionals. It invests in all major asset classes including UK and overseas equities, government bonds, investment grade and high yield corporate bonds, property and cash.