Latest News

Deep recession fears rise in UK as BoE delivers another rate hike

December 15, 2022 (Investorideas.com Newswire) Fears that the Bank of England is driving the UK economy into a deep recession are growing, despite the central bank voting in favour of a more moderate 0.5 percentage point interest rate hike.

This is the stark assessment from Nigel Green, the chief executive and founder of deVere Group, one of the world’s largest independent financial advisory, asset management and fintech organisations.

It follows the Bank on Thursday delivering a half-point increase in the key rate, putting the benchmark at 3.5%.

The deVere CEO says: “The Bank of England’s decision takes interest rates up to the highest level since October 2008 – at a time when the UK is already in recession, and will remain in one for the whole of next year, according to the government’s own analysis.

“The news effectively dashes remaining hopes for a shallower recession.

“The Bank of England seems to be intentionally driving the UK’s consumer-led economy into a deeper recession, putting households and business harder under the cosh, in order to cool inflation.”

He continues: “The rate rise will immediately hit those on variable rate mortgages, while those with fixed rate mortgages which are soon to expire will be facing higher rates.”

With the UK economy looking increasingly likely to be derailed, Nigel Green suggests that people with exposure to UK financial assets should urgently review and potentially revise their investments in order to protect their money.

He says: “You should take a look at sectors that are likely to be recession-resistant, including food, energy and financial services.”

In addition, in this environment, less familiar, return-enhancing asset classes should also be considered. These might include venture capital, structured products, high-dividend stocks, hedge funds, managed futures and global equity funds.

“The Bank of England decision is another hammer blow for UK households and business and for those with exposure to UK financial assets,” concludes the deVere CEO.

t: +44 207 1220 925
e: george@priorconsultancy.co.uk
Twitter: @PriorConsults

deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients. It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.

More Info:

This news is published on the Investorideas.com Newswire – a global digital news source for investors and business leaders

Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.

More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release and our other news services on the Investorideas.com newswire https://www.investorideas.com/News-Upload/ and tickertagstocknews.com

Global investors must adhere to regulations of each country. Please read Investorideas.com privacy policy: https://www.investorideas.com/About/Private_Policy.asp

What's your reaction?

Excited
0
Happy
0
In Love
0
Not Sure
0
Silly
0

You may also like

Leave a reply

Your email address will not be published. Required fields are marked *

More in:Latest News