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The Bank of England’s Dovish Hike
By Advisor Perspectives
For the first time in over 10 years the Bank of England raised its official policy rate, a hike of 0.25% to 0.5%. The rationale is a combination of growth continuing at or slightly above trend, unemployment falling further from its current 42-year low, and the Monetary Policy Committee’s (MPC) expectation that inflation will remain above the 2% target for the next three years. While respecting the uncertainty surrounding Brexit, the MPC’s collective view is that the time has come to move away from the cyclical low on interest rates.
Read more at Advisor Perspectives.