Wealth management expert: Bank unlikely to raise base rate

A wealth management expert has claimed the Bank of England is unlikely to raise the base rate at the next meeting of the Monetary Policy Committee this Thursday (September 9th).

Author Martin Bamford opined: "It would be a big surprise to see a rate hike now," adding he expects the Bank Rate to be maintained at 0.5 per cent at least until the end of the year.

For those in wealth management, this suggests savings accounts will continue to offer low levels of returns, which could encourage individuals with private means to explore alternative options, such as offshore banking or investment in precious metals.

The previous change in Bank Rate was a reduction of 0.5 percentage points to 0.5 per cent on 5 March 2009 and the base rate has been maintained at this record low ever since.

Mr Bamford suggests higher interest levels would do little to combat inflation and could stifle economic recovery, arguing for these reasons, it is unlikely to be increased in the near future.  ADNFCR-2318-ID-800054751-ADNFCR