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Investor Activity Increases As HULT Private Capital Predict BoE Interest Rate Rise
City based HULT Private Capital have seen an increase in investor activity as the UK braces itself for the knock on effect of the predicted interest rate hike.
Economists across the City are expecting interest rates to rise, doubling its existing value, and bringing it to 0.5%. In a move speculated to curb runaway inflation levels, experts are still concerned for the future of the economy if Threadneedle Street do not commit to a succession of interest rate rises over the year ahead. John Hudson, Senior Investment Advisor at HULT Private Capital thinks the move is a double-edged sword, "as an economy, we need interest rates to rise, but as consumers and homeowners, the rate hike is likely to put thousands of middle and working class families under greater financial pressure with mortgages and pension pots set to be hardest hit. Many of our clients have had the foresight to prepare for eventualities such as these having lived through financial crises, but many are now providing much needed support to their families to help them weather the proverbial storm."
Hudson is not alone in his forecasts, as experts admit that the rate of inflation has not been growing in unison with salary rises. "Even final salary pensions with the typical 2.5% inflation protection built in will be of little consolation in such uncertain times. The importance of ensuring one's hard-earned money continues to work hard in the face of economic adversity remains our priority, but it is now also at the forefront of the minds of many bewildered investors."
As we await the update from the Bank of England on Thursday, the real question is whether the Monetary Policy Committee's intentions are to truly to limit losses by reducing the balance sheet in with a series of commitments in the longer term.
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The Press Team, HULT Private Capital
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