Investment Event
BoE reverts to 25bp rate hike
04 August 2023
Key takeaways
- The BoE hiked interest rates by 25bp to 5.25 per cent
- Ongoing concerns about persistent inflation pressures prompted the BoE’s latest move
- We continue to advocate a cautious asset allocation, which includes an underweight view on UK equities
- Sterling is likely to trend higher as the dollar rally unwinds, but could face some resistance from risk-off sentiment
- We are neutral on short-dated gilts but see value in the 10yr sector