Investors could see a faster turnaround in their fortunes despite a looming recession, analysts have predicted, as the Bank of England said interest rates will rise slower and peak lower than priced in by financial markets.
Today (3 November) the central bank's Monetary Policy Committee raised interest rates by 0.75% to 3%, the biggest single increase since 1989, in an effort to bring down double digit inflation, and protect the value of sterling. Bank Governor Andrew Bailey said rates may need to go up further, but the pace of increases would be slower and shallower. Also, while a recession may be longer at two years than any previously recorded, it would not be as deep. Peter Doherty, head of fixed income at Sanlam Investments, called the governor's message "dovish" and a "clear signal" the peak on in...
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