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Press comment: BoE appear worried by global growth, not just Brexit and hedge funds

19 December 2019

If you are covering the Bank of England’s decision to hold interest rates at 0.75%, please find below commentary from Hinesh Patel, portfolio manager at Quilter Investors:

“In what is probably the second biggest story to come out of the Bank of England today, we have seen rates remain on hold once again as policy makers stay in a wait and see mode. This familiar holding pattern is likely to continue for some time as we await detail on what the future relationship with the European Union looks like. However, it is clear from the Bank that it is not just Brexit, or the hedge funds, that Mark Carney and co seem to be concerned about. They have specifically referenced the need to act on interest rates should global growth fail to stabilise and ease to help boost UK GDP and inflation.

“With ratification of the US-China trade deal remaining a large obstacle to global growth and the President now officially undergoing impeachment proceedings, 2020 is looking like it could see a return to volatile markets. It feels like next year could see the Bank of England be a little more active in the monetary policy space, something investors will need to watch and listen to closely.”

Gregor Davidson

External Communications Manager

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