UK interest rates rise for the first time in a decade

The Bank of England (BoE) raised UK interest rates for the first time since July 2007. The base rate has increased from 0.25% to 0.5%, but we do not believe this necessarily marks the start of an imminent tightening cycle… Although today’s is first interest rate hike in over a decade, the forward guidance provided … Continue reading “UK interest rates rise for the first time in a decade”

Could politics structurally alter the economic backdrop?

With 5 July having marked ten years since the Bank of England (BoE) last raised UK interest rates, we assess the state of the economy and its prospects in light of recent political developments. Although the UK economy has shown resilience since last year’s Brexit referendum, its growth rate decelerated in the first quarter of … Continue reading “Could politics structurally alter the economic backdrop?”

Consumers under pressure as UK inflation continues to rise

More bad news for UK households. The annual rate of consumer price index (CPI) inflation rose from 2.3% in March to 2.7% in April – higher than consensus estimates of 2.6%. Meanwhile, the retail price index (RPI) measure of inflation jumped from 3.1% to 3.5% over the same period, also slightly higher than consensus expectations. … Continue reading “Consumers under pressure as UK inflation continues to rise”

UK inflation jumps as sterling fall starts to be felt

UK inflation beats estimates UK consumer price inflation hits its highest level for two and a half years.   The annual rate of UK inflation based on the consumer prices index (CPI) increased to 1.6% in December compared to 1.4% in the previous month – the fastest pace of inflation for two and a half years. … Continue reading “UK inflation jumps as sterling fall starts to be felt”

How investors can prepare for rising UK inflation

Various forces are conspiring to push UK inflation higher, here we discuss these and the investment implications of accelerating price rises. Given current economic headwinds, some have suggested that the era of extremely low interest rates and inflation is here to stay. However, a number of factors suggest that UK inflation is set to rise … Continue reading “How investors can prepare for rising UK inflation”