Interest rate rise draws nearer

Rachel Dalton explores how investors should react to the Bank of England’s revised unemployment threshold

clock

The Bank of England (BoE) last week revealed that unemployment is falling faster than previously expected. While great news for workers facing depressing labour figures, there are also extensive connotations for institutional investors.

When taking the reins at the bank earlier this year, governor Mark Carney set an unemployment threshold of 7%. Once this is reached, Carney said, the bank would consider raising interest rates. ...

To continue reading this article...

Join Professional Pensions

Become a Professional Pensions Lite Member today

  • Three complimentary articles per month covering the latest real-time news, analysis and opinion from the industry
  • Receive important and breaking news stories via our two daily news alerts
  • Hear from industry experts and other forward-thinking leaders

Are you a trustee, investment consultant or in-house pension and benefit scheme professional? You can apply for full complimentary access here

Join now

 

Already a Professional Pensions
member?

Login

More on Investment

Partner Insight: Volatility, what volatility?

Partner Insight: Volatility, what volatility?

Looking back over the year, 2025 was a strong one for asset-backed securities (ABS) – along with a whole host of other assets. In the ABS market, we typically see spreads move in line with other markets, which have seen tightening throughout the year as demand continues to remain robust. And we see no sign of this demand slowing.

Jeremy Deacon, Head of ABS and Leveraged Finance at Royal London Asset Management
clock 24 December 2025 • 6 min read
Border to Coast commits further £1bn to private markets

Border to Coast commits further £1bn to private markets

LGPS pool expands exposure long-term investments in global private markets

Jonathan Stapleton
clock 23 December 2025 • 4 min read
Border to Coast identifies UK life sciences as investment opportunity in 2026

Border to Coast identifies UK life sciences as investment opportunity in 2026

LGPS pool says life sciences sector offers ‘depth of opportunity’ and ‘true innovation’

Martin Richmond
clock 17 December 2025 • 2 min read
Trustpilot