A hike in the base rate of as little as 0.25% would have a much greater impact on the disposable incomes of highly indebted consumers, potentially threatening the UK's recovery, Neil Woodford has said.
The manager (pictured), who expects rates will rise much later than markets are currently estimating, said given the Bank of England now has a dual mandate to promote financial stability, a hike now seems unlikely. Woodford, responding to what had been a growing expectation of a hike this year before Bank governor Mark Carney's latest speech, said: "The market is wrong to expect an imminent tightening of monetary policy. It would be a mistake if interest rates were to rise." Carney's most recent move has been to cool expectations of an imminent rate hike, in a u-turn on previous comme...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
