'Dovish' Bank of England message heralds faster turnaround for investors

Hike of 0.75%

clock • 4 min read

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...

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 UK

Trustpilot