Commenting on the Bank of England’s decision to hold interest rates at 0.1%, Melanie Baker, senior economist at Royal London Asset Management said:
“Despite Governor Bailey revealing that today’s interest rate decision was a “close call”, the Bank of England has decided to keep rates on hold. However, they signalled a rate rise in coming months if the economy evolves as they expect.
“The Bank’s forecasts and comments sound consistent with a rate rise in February 2022, with some probability of a December 2021 hike, as the picture becomes much clearer on what has happened to the UK labour market following the end of the furlough scheme.
“However, the forecasts and commentary also confirm that it doesn’t make sense at this stage to expect a rate rise in coming months to mark the start of any rapid tightening of monetary policy.”
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 £164 billion of assets and employs 129 investment professionals as at 31 December 2021. 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.
For press releases about RLAM please click here.