The race to raise rates

By Alan Wilson, Fixed Income Research Analyst, Aberdeen

Who will raise interest rates first – the US Federal Reserve or the Bank of England? It’s not quite a Usain Bolt versus Justin Gatlin-esque fastest-man-on-earth debate. As rates have been so low for so long, perhaps long-distance runners Paul Tergat and Haile Gebrselassie are a better analogy, with the rate-hiking decision having more of the air of a marathon. Today’s Super Thursday at the Bank of England, when it will simultaneously publish its November Inflation Report, Monetary Policy Committee meeting minutes, and interest rate decision, could reveal some clues as to who the winner could be.

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