Rathbones' Coombs: Bank Shouldn't Have Hiked Interest Rates

The Bank of England should not have raised interest rates, according to Rathbones' David Coombs. He calls yesterday's decision "a complete error"

David Brenchley 3 August, 2018 | 7:47AM
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Mark Carney, Bank of England, interest rates, Brexit, interest rate rise

The Bank of England should have kept UK interest rates at 0.5% until Brexit uncertainty has abated, which could be five years away, according to David Coombs, head of multi-asset investments at Rathbones.

Speaking to Morningstar.co.uk about an hour before the Bank unanimously decided to hike rates to a nine-year high 0.75%, Coombs said he was likely to be a buyer of UK Government bonds this week, should they sell off due to what he called “a complete error” of monetary policy.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Fidelity MoneyBuilder Income W Inc124.00 GBP-0.32Rating
Hargreaves Lansdown PLC1,564.00 GBP0.00
London Stock Exchange Group PLC8,084.00 GBP0.00Rating

About Author

David Brenchley

David Brenchley  is a Reporter for Morningstar.co.uk