Possible scenario
Higher-For-Longer BoE
45% Chance
Mann's remarks reinforce the view that the Bank of England will tolerate weaker growth to prevent supply-driven inflation from feeding wages and prices. Markets modestly reprice UK rate expectations higher, with rate-sensitive equities lagging and bank shares mixed.
Initial impacts
- Riskier companies' borrowing costs Up
- Market volatility Up
- 10-year Treasury yield Up
Secondary impacts
- Utilities -0.9%
- Consumer Cyclicals -0.8%
- Technology -0.8%
Portfolio impact
S&P 500-0.6%
Each figure is the modeled move of the S&P 500 if the outcome occurs. For information only. Not investment advice.
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