UK Interest Rates

The Bank of England (BoE) announced the most significant upgrade to its economic outlook for a quarter of a century this week but scope for further optimism about UK growth prospects is limited by residential mortgage costs that could soon swallow two-thirds of take-home pay for some borrowers.

Bank of England (BoE) Chief Economist Huw Pill caused controversy this week when saying everybody must accept being poorer due to inflation but this wouldn't have been so if he also explained how inflation risks taking food directly from the plates of people in some of the world's very poorest countries. 

The Bank of England is on course to cut interest rates below 0.5% - a move that will be met with resistance.

Bremain Odds are unlikely to get any higher argue TD Securities who suggest this could be as good as it gets for the pound and interest rate yields.

The British pound retains the solid bias that has come to characterise much of November - and there is reason to believe the strength could last.