Simon French’s comments about the Bank of England Interest Rates rise last week

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Panmure Gordon’s Chief Economist, Simon French, had the below comments regarding the Bank of England’s Interest Rates rise last week.

“Last week’s fourth successive interest rate increase from the Bank of England has taken UK Bank Rate to a level not seen for almost 15 years. Despite this break with the recent past, the interest rates available to most households and businesses remain negative in real terms. Those are not prohibitive financial conditions. Far more relevant is what happens next. We expect the Bank of England to continue steadily tightening policy as it fights UK inflation set to exceed 10% later this year. However rapid tightening like the Federal Reserve is now planning appears improbable given the likely slowdown in activity resulting from higher energy costs.”

9th May 2022

Simon French

Managing Director, Chief Economist

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