Base rates remained unchanged at 0.25% following the Bank of England’s monthly meeting in London on Thursday, although the Bank’s Monetary Policy Committee (MPC) suggested that it may consider cutting rates further in coming months, despite the post-Brexit landscape looking less gloomy than some had predicted.
In their press statement, the Bank said that; “A number of indicators of near-term economic activity have been somewhat stronger than expected” but economic pointers suggested that the UK economy had escaped the worst case scenario following the referendum surprise.
However, some economists are still predicting a further cut to the base rate, possibly to as little as 0.1%, but that is not envisaged in the next couple of months. The MPC voted 9-0 to keep rates as they were this month, so it would take a significant downturn to see that majority reversed in the short-term.
If you would like to talk to The Financial Planning Group about your post-Brexit investment strategy, please call 0800 731 7614 and we will be happy to arrange a meeting at our offices in the heart of Teddington.