Bank of England keep interest rate at 4.75%

Bank of England keep interest rate at 4.75%

19 Dec 2024

Simeon Willis, Chief Investment Officer, XPS Group, said: “The MPC deciding to take it easy on reducing rates isn’t surprising in an environment where inflation is above target and rising.

“Inflation has been picking up over the last six months. This was expected as energy price falls during the latter half of 2023 fell out of the calculation, but recent price rises in October were higher than trend levels.

“At the other end of the yield curve, longer-dated gilt yields have been rising. Nominal and real gilt yields are now back at levels previously seen at the height of the gilts’ crisis and this year’s Budget. This is generally good news for pension schemes and has boosted funding levels to new highs”