RAW Capital Partners: BoE to hold rates

September 19, 2024

Interest Rates Monetary policy UK

With the markets heavily expecting the Bank of England to hold the base rate at 5%, I thought I'd share some commentary from my client, Ben Nichols (Managing Director at RAW Capital Partners), a little earlier than usual.

Obviously, please feel free to get in touch to mock me if the BoE cuts the base rate, but I hope the below is of use for any stories you're writing today.

Ben Nichols, Managing Director at RAW Capital Partners, said:

'Yesterday’s inflation print all but confirmed today’s decision, though the markets had been expecting it for some time. With core and services inflation both applying pressure in August’s CPI, policymakers clearly want to see a sustained downward trend in the underlying figures before opening the door to a more aggressive rate-cutting cycle.

Today’s rate hold, therefore, may seem like something of a setback, particularly for property buyers and borrowers, but it should have a consolidating effect that will provide greater market and economic stability in the medium to long term. We can probably expect at least one further rate cut before year-end, which should provide a boost to investor sentiment. In light of this, we expect numerous opportunities to arise in the coming weeks and months, especially for investors who diversify their portfolios to meet the ever-changing nature of the markets.

Indeed, while the BoE is holding rates, the ECB is cutting them, and the Federal Reserve is following suit. As such, we could see some fluctuations in the markets as the major banks relax their monetary environments at different paces and to different degrees. So, investors could look to alternative investments like real estate, private debt and other non-traditional assets to ensure that their portfolios remain robust in the face of any potential volatility.'