03 August 2017

BoE Comment - Brexit uncertainty and low wage growth will keep rates on hold

3 min read

 
Margherita Orlandini, Corporate PR Manager, Royal London

Margherita Orlandini

Corporate PR Manager, Royal London

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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.

- ENDS -

For further information please contact:

Margherita Orlandini, Corporate PR Manager, Royal London

About Royal London Asset Management (RLAM):

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 £114 billion of assets and employs 92 investment professionals as at December 2018. It invests in all major asset classes including UK and overseas equities, government bonds, investment grade and high yield corporate bonds, property and cash.

For professional clients only, not suitable for retail investors.

Issued February 2019 by Royal London Asset Management Limited, registered in England and Wales number 2244297; authorised and regulated by the Financial Conduct Authority. Registered Office: 55 Gracechurch Street, London, EC3V 0RL.

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