Latest News

The Bank of England admits defeat on inflation

September 22, 2022 ( Newswire) The Bank of England has admitted defeat on inflation and the impact will have investors considering their options outside the UK to protect and grow their money, affirms the CEO of one of the world’s largest independent financial advisory, asset management and fintech organizations.

The observations from deVere Group’s Nigel Green come as the Bank of England raises UK interest rates by 0.5 percentage points to 2.25% in an attempt to temper soaring inflation amid the cost-of-living crisis.

The central bank also says the UK is now officially in recession.

He says: “This the seventh consecutive increase, but a smaller rise than many expected.

“By not announcing a higher rise, it seems as though the Bank of England has admitted defeat on inflation as it focuses on trying to avoid a deep and long recession.”

The deVere CEO continues: “Looking ahead, the beleaguered pound – already one of this year’s worst performing major currencies – will continue to be squeezed hard because of the UK’s downgraded economic outlook.

“As UK financial assets are put under intensifying pressure, we expect that a growing number of investors with exposure to them will consider legitimate overseas options in a bid to protect and grow their money.”

Thursday’s half-point hike means the Bank of England has now hiked UK interest rates by 200 basis points so far this year as it moves to tame red-hot soaring inflation.

As well as inflation running at a 40 year high and a recession to take into account, the Bank also has a new political administration in the picture.

“Friday’s mini-budget is likely to set out various tax cuts and expansionary fiscal measures. Against this backdrop, the Bank’s job becomes more complicated. But, at the same time, it is perhaps even more surprising the rate rise wasn’t larger,” says Nigel Green.

He concludes: “We can expect more turbulence for sterling and UK financial assets and, as a result, we are likely to see investors increasing their exposure to overseas financial assets, such as global equity funds.”

t: +44 207 1220 925
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 Newswire – a global digital news source for investors and business leaders

Disclaimer/Disclosure: 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: Learn more about publishing your news release and our other news services on the newswire and

Global investors must adhere to regulations of each country. Please read privacy policy:

What's your reaction?

In Love
Not Sure

You may also like

More in:Latest News

Leave a reply

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