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Investment Event: Bank of England holds rates

The Monetary Policy Committee teed up a potential rate hike “over the coming months”, should the economy evolve as expected
05 November 2021
    Download the full reportPDF, 428.24KB
    • At the Bank of England’s (BoE) November meeting, the policy rate was held at 0.10 per cent in a 7-2 vote
    • The MPC teed up a potential rate hike “over the coming months”, should the economy evolve as expected
    • The Bank’s forecasts for medium-term inflation suggest that the market had been pricing in too much tightening
    • The Bank of England’s decision highlights that market pricing on central bank interest rate increases has probably gone too far
    • Our baseline scenario of gradual policy normalisation in the context of ongoing economic expansion remains a supportive backdrop to risk assets