Craig Inches, Head of Rates and Cash, discusses the UK’s interest rate outlook for the coming months, the implications for short-term money market funds, and why rate cuts could prompt treasurers to look at longer-term liquidity solutions.
As 2024 progresses, there is little doubt that interest rate cuts are on the horizon. In August 2023, the Bank of England increased the base rate to 5.25% to combat soaring inflation. But with UK inflation falling to the target rate of 2% in June, there is a clear expectation that interest rates will be reduced in the coming months.
This is a financial promotion and is not investment advice. Past performance is not a guide to future performance. The value of investments and any income from them may go down as well as up and is not guaranteed. Investors may not get back the amount invested. Portfolio characteristics and holdings are subject to change without notice. The views expressed are those of the author at the date of publication unless otherwise indicated, which are subject to change, and is not investment advice.