Monthly Archives - August 2018

Bank Rate increase boosts prospects for higher REAL Bond returns

Today's Monetary Policy Committee decision to increase base rate from 0.5% to 0.75% pa brings nearer the prospect of higher returns for investors in REAL Monthly Income Bonds. Interest on these bonds, currently 5% pa AER, will rise while base rate exceeds 0.75% pa. For example if the next MPC change leads to a 1% base rate, monthly bond interest will increase to 5.4% pa.