Could UK see negative rates within the year following Brexit vote?

50% chance of cut next month

Laura Dew
clock • 3 min read

Markets are pricing in a 15% chance of negative interest rates within the next year, following the UK's decision to leave the European Union.

In the near term, they are predicting a 50% chance of an interest rate cut in July, a 65% chance of a reduction in August from the current level of 0.5%, and an 80% chance of a fall by the end of the year, according to Hargreaves Lansdown.  There is also speculation the Bank of England may re-start quantitative easing, as it did during the financial crisis. Speaking on Friday following news of the referendum result, governor Mark Carney (pictured) said the Bank of England "will not hesitate" to take additional measures if necessary. He said the Bank had an extra £250bn in funds it cou...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Markets

Autumn Budget 24: UK stocks rally while gilt yields soar as 'questions remain' around fiscal headroom

Autumn Budget 24: UK stocks rally while gilt yields soar as 'questions remain' around fiscal headroom

Gilts reach year-to-date high

Linus Uhlig
clock 30 October 2024 • 2 min read
Autumn Budget 24: Income tax threshold freeze to be lifted in 2028/29

Autumn Budget 24: Income tax threshold freeze to be lifted in 2028/29

No extension of freeze in thresholds beyond 2028

clock 30 October 2024 • 3 min read
Market Movers Blog: Wall Street suffers losses as earnings reports drive tech sell-off

Market Movers Blog: Wall Street suffers losses as earnings reports drive tech sell-off

Latest news and analysis

Investment Week
clock 29 October 2024 • 1 min read
Trustpilot