First MPC meeting of the year The Bank of England’s (BoE) Monetary Policy Committee has cut interest rates by a quarter point, from 4.75% to 4.5%. Seven MPC members voted in favour of the interest rate cut, while two preferred a 50bps snip. The Bank argued that over the past two years, there has been a “substantial progress on disinflation …
HL, Quilter and AJ Bell CEOs urge Reeves to reconsider IHT on pensions
The chancellor, Rachel Reeves, announced at the Budget last October that some pensions will be liable to inheritance tax upon death from April 2027. The CEOs of four of the UK’s biggest providers have written to the chancellor urging her to rethink the government’s ‘flawed and damaging’ policy of levying inheritance tax (IHT) on pensions from 2027, Citywire New Model …
UK inflation lowers to 2.5% in December
Down from 2.6% in November The UK Consumer Prices Index (CPI) dropped to 2.5% in December, below FactSet’s consensus of 2.8% for the month. According to data from the Office for National Statistics today (15 January), the downward trend was driven by restaurants and hotels, with the latter recording a 1.9% decline in prices over the month, as opposed to …
Gilt yield drama makes rising annuity rates ‘hard to ignore’
Dramatic spike in government borrowing costs January started in dramatic fashion for government borrowing with a significant cost spike which saw the 15-year gilt yield standing at 5.17%, compared to 4.23% on the same date the previous year. Uncertainty about the performance of the UK economy and the ramifications for inflation after Donald Trump returns to the White House are …
The Bank of England holds rates at 4.75% as Budget adds inflation uncertainty
The MPC said there were ‘additional uncertainties’ caused by the Budget and further global political tensions. The Bank of England (BoE) has held the base rate at 4.75% in a widely expected move, with the Monetary Policy Committee (MPC) voting in a 6-3 majority. The decision to hold rates comes after twelve month CPI inflation increased to 2.6% in November, …
UK inflation jumps to eight-month high of 2.6%
The rise means it is unlikely the Bank of England will cut rates later this week, analysts say. UK inflation jumped to 2.6% in November, its highest level in eight months. The rise in the Consumer Price Index, from 2.3% in the previous month, was due to higher petrol and clothing prices, according to the Office for National Statistics (ONS). …