Applied Research

To Hike or Not to Hike: Gauging the effects of potential Bank of England rate raises

After an unprecedented 8.5-year period of near-zero interest rates, it looks like the Bank of England (BoE) is finally preparing to raise its base rate from the current level of 0.25%. Following more than three months of conflicting, confusing and contradictory signals from rate-setters, the market consensus is now for a 25-basis point increase at the November 2 Monetary Policy Committee meeting. In his research paper, Christoph V. Schon, Axioma's Executive Director of Applied Research, explores a number of historical scenarios of previous BoE rate hikes, analyzing the potential impact on a multi-asset class model portfolio.

Author: Christoph Schon, Executive Director, Applied Research


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