Commenting on the Bank of England’s decision to keep policy rates unchanged, Melanie Baker, senior economist at Royal London Asset Management, said:
“Despite leaving monetary policy unchanged today, further policy stimulus looks likely.
“The Bank’s assessment of current economic conditions makes for grim reading and they see downside risks to their forecasts.
“Before their current asset purchase programme runs out in July, an extension looks likely. If market conditions deteriorate significantly before that, it is clear they will take action.”
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 £139 billion of assets and employs 113 investment professionals as at end July 2020. 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 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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