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2026-09-17 20:46:12
[Institution: Bank of England's decision to hold rates steady is correct; economic fundamentals do not support an urgent rate hike] ⑴ In a report, Schroders analyst David Rees stated that the Bank of England's decision to maintain interest rates was correct. ⑵ He said that while a rate hike in the fall now seems more likely, economic conditions do not warrant one. ⑶ Rees pointed out that the market may be paving the way for an autumn rate hike, especially if other central banks are also tightening policy, but monetary policy should be guided by the fundamentals of the UK economy, not influenced by global events. ⑷ He emphasized that this is not an economy in dire need of a rate hike. ⑸ Rees stated that the greater risk lies in fiscal policy, emphasizing that increased spending could push up domestic inflation, thereby triggering a rate hike.
