What the Interest Rate Decision Means for Investors

Bank of England's unchanged decision sparked some unusual market volatility, but a rate rise next month could still be on the cards

Sunniva Kolostyak 4 November, 2021 | 3:51PM James Gard
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Bank of England Governor Andrew Bailey

The Bank of England (BoE) today surprised markets by voting to hold interest rates at a  record low of 0.1%, defying expectations for a rise to 0.25% and triggering market volatility across a range of assets.

Experts thought that this interest rate rise was "priced in" after many statements from Bank of England officials, including Governor Andrew Bailey who said the Bank was "ready to act" to tackle inflation, which is expected to reach 5% in spring 2022. In last week's Budget, the Chancellor, Rishi Sunak, had effectively teed up a possible move by the Bank of England by reminding the central bank of its remit to tackle rising inflation.

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About Author

Sunniva Kolostyak  is data journalist for Morningstar.co.uk