Philip Smeaton, Chief Investment Officer at Sanlam UK: “With the Fed hiking interest rates, the European Central Bank winding down quantitative easing, and even the Bank of Japan building in the flexibility to reduce monetary stimulus, the Bank of England must have felt left out. Today Mark Carney and the MPC reluctantly raised rates by a quarter of a percent while house prices stagnate, businesses postpone investment, and consumers think twice about using their credit cards.
“Continuing positive employment figures and wage growth help to justify today’s increase and the Bank will be hoping that the economy strengthens in the second half of the year. But with the clock ticking on a Brexit deal and nervousness on the high street, this optimism might be misplaced.”
