Our views

Expect forceful action from BoE in August


Darren Bustin, Head of Derivatives

14 July 2016

The Bank’s decision to keep base rates on hold today has come as a surprise to the markets, particularly Mark Carney’s personal vote to keep rates on hold. This is another example of ‘forward misguidance’ from a governor who had previously indicated very publicly that more monetary easing was on the table including the possibility of action at the July meeting.

Even if action is expected in August, markets may be much more sceptical in the run up to the next Monetary Policy Committee meeting against a backdrop of increased uncertainty.


The value of investments and the income from them is not guaranteed and may go down as well as up and investors may not get back the amount originally invested. The views expressed are the author’s own and do not constitute investment advice.