Four factors dictating the paths of US and UK interest rates

Rathbones' Julian Chillingworth analyses the key considerations for central bankers as they decide on the trajectory of future monetary policy.

Interest rates on both sides of the Atlantic have been at record lows for six and a half years, but after a great deal of speculation and opaque pronouncements from central bankers, a hike now feels very close indeed. Many investors expect the US Federal Reserve to raise its Fed Funds Rate band by 25 basis points at its September meeting, or failing that, in December. How are bond managers preparing for an interest rate rise? The Bank of England is likely to follow up that decision with an identical increase of its own soon after. After that, however, we believe the monetary ...