Bank Rate increase boosts prospects for higher REAL Bond returns

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.

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