Monthly Archives - August 2016

REAL Bond Interest maintained despite Bank of England rate cut

Today’s Bank of England Base Rate cut to an historic low of 0.25% per annum is expected to boost demand for REAL Bonds. REAL Income Bonds track BofE Base Rates between 0.5% and 5.0%, plus a 3.5% per annum margin. Due to the base rate floor, the cut leaves the REAL Income Bond interest unchanged at 0.5% plus 3.5% = 4.0% per annum. REAL’s director Alan Bate commented, “The Bank’s decision is likely to reduce returns available from many other investment [...]