The Bank of England is right to hold off on rate hikes as the pound slumps, investment director says
The U.K.’s central bank shouldn’t rush to increase interest rates, according to Julian Howard, Lead Investment Director of Multi Asset Solutions at GAM Investments, despite the slumping pound.
“I don’t think it’s the Bank of England’s job to shore up the pound,” Howard told CNBC’s “Squawk Box Europe” on Tuesday.
“I prefer to frame this as a global phenomenon and I think the Bank of England should hold off before raising rates any further,” he said.
He also said that talk of the U.K. becoming an emerging market is “a little bit premature.”
“Some even said we’re becoming a Mediterranean country but without the weather – I think that’s too harsh,” Howard said.
“I think in the medium term [deregulation and tax cuts] could be very helpful, but the market has decided to ignore it,” he told CNBC.
— Hannah Ward-Glenton
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