Commenting on the BoE raising rates more slowly than the Fed and ECB, Rupert Thompson, Investment Strategist at Kingswood, said:
“The Bank of England decision to raise interest rates by 0.5% took rates up to 2.25%, their highest level in 14 years.
However, while the Bank said it would continue to respond forcefully as necessary to inflation, it did not follow the lead of both the Fed and the ECB which both raised rates by as much as 0.75% in their latest move.
The Bank’s decision to increase rates more slowly than its counterparts can only increase the downward pressure on sterling, particularly given the government’s large fiscal boost which is likely to reinforce underlying inflation pressures.”
ENDS
About Kingswood
Kingswood Holdings Limited (trading as Kingswood) is an AIM-listed (AIM: KWG) international fully integrated wealth management group with circa £9.1 billion of Assets under Advice and Management. It services circa 19,300 clients from a growing network of offices in the UK including Abingdon, Beverley, Conisbrough, Darlington, Derby, Essex, Grimsby, Hampshire, Harrogate, Hull, Lincoln, London, Maidstone, Newcastle, Sheffield (2), Worcester and York with overseas offices in Johannesburg, South Africa and Atlanta, New York and San Diego in US.
Kingswood offers a range of trusted investment solutions to its clients, which range from private individuals to some of the UK's largest universities and institutions, including investment advice and management, personal and company pensions and wealth planning. Kingswood is focused on becoming a leading player in the wealth and investment management market through targeted acquisitions in the UK and US, creating a global business through strategic partnerships.