Interest Rates: BoE Plans Could be Taking Advantage of pre-Brexit Conditions

Stuart Law

CEO at Assetz Capital

Views 150

Interest Rates: BoE Plans Could be Taking Advantage of pre-Brexit Conditions

09.02.2018 09:00 am

The Bank of England should be cautious about raising interest rates by too much in a short space of time. There’s a high probability that any rises could simply be a way to take advantage of the opportunity, whilst it exists, to hike up interest rates ahead of Brexit in case there is a need to then drop them again.

It’s also unlikely that peak interest rates will rise above 2% in this cycle, and even 2% could prove too painful for many. The Bank of England and the government should be far less concerned about offsetting inflation by raising interest rates at speed, as the inflation rate is likely to decrease in the near future.

Instead, the government should look to alternative tactics in order to manage a possible credit bubble in several asset classes, in a similar way to the use of stamp duty to slow the London property market and new taxes to slow the buy-to-let market.

Latest blogs

Paul Sweetingham DXC Technology

Eight Must-haves When Choosing a Cards and Payments Services Provide

There are so many factors to consider when a business starts looking for a cards and payment services provider.  The new kids on the block, fintechs and start-ups, are challenging the norm, bringing technological customer expectations with them – Read more »

Mark Hinds Polymatica

Increasing Data Return on Investment: Why It’s Time to Make the Data Vault More Accessible

As in almost every industry, those in the financial services sector hold swathes of data about every aspect of their organisation. In an ideal world, all departments within a  business should have easy access to this data to help guide intelligent Read more »

Kulpreet Singh UiPath

Accelerating Finance and Accounting Transformation with RPA

Robotic Process Automation has the power to streamline processes, empower staff and increase customer satisfaction says Kulpreet Singh, Managing Director - EMEA, UiPath Data is all around us and finance and accounting departments are well versed in Read more »

Lu Zurawski ACI Worldwide

Lu Zurawski comments on ATM hackers steal $10m across 28 countries in audacious bank heist

ATMs rely on operating systems just like domestic computers, so it is common for ATMs to use versions of Windows or Linux. And just like with home PCs, owners need to keep their systems up to date with the latest releases of security software Read more »

Eran Noam Shield FC

Capturing Communications isn’t Compliance

It is six months since the Markets in Financial Instruments Directive (Mifid II) came in to force and two months since the General Data Protection Regulation (GDPR), which means you are probably feeling the effect of regulation exhaustion. It is Read more »

Magazine
ALL
Free Newsletter Sign-up
+44 (0) 208 819 32 53 +44 (0) 173 261 71 47
Download Our Mobile App