UK rates up to 5.25% – “the risks to inflation now appear more to the upside”

The Bank of England has just hiked to 5.25%. Their statement is here. The Bank expects inflation to rise further in the near term, with limited spare capacity in the economy. However they do expect the impact of falling oil and the stronger pound to lead to inflation falling back in the medium term. The risks however are “more to the upside”. We think the Bank still has more to do.

The value of investments will fluctuate, which will cause prices to fall as well as rise and you may not get back the original amount you invested. Past performance is not a guide to future performance.

Jim Leaviss

Job Title: CIO Public Fixed Income

Specialist Subjects: Macro economics and fixed interest asset allocation

Likes: Cycling, factory records, dim sum

Heroes: Brian Clough, Morrissey, Neil Armstrong

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