Wealth Horizon reacts to Inflation Report
Chris Williams, CEO of Wealth Horizon, commented: “This latest Inflation Report from the Bank of England puts paid to any expectations of an imminent rate hike. With the Bank explicitly warning CPI inflation is likely to fall below 1% in the next six months, thanks to lower energy and food prices, we cannot foresee a rise in the base rate from record lows any time soon.
“The report is good news for savers, as it means their pots will not be eroded as quickly by inflation, but it does mean asset allocation decisions must be closely looked at. In particular, it means those expecting the much-mooted great rotation will likely be left waiting for some time, with gilt yields actually dropping back just after the report was published.”