Will insurance hikes spiral into higher rates for longer?

The Bank of England will almost certainly raise interest rates from 3.75% to 4.00% at its meeting on Thursday 5th November and may lay the ground for a rise to 4.25% shortly after. We don’t think this will mark the start of a series of rate hikes that keep rates high for a couple of years, as investors expect. That said, the latest rises in energy prices and the solid economy are testing our confidence in that view. 

We’ll be discussing the outlook for UK interest rates and the risks in a 20-minute online briefing at 3pm on Thursday 5th November. (Register here.)