BoE's rate cut is 'bad news' for DB schemes

Stephanie Baxter
clock • 3 min read

The Bank of England's decision to cut interest rates for the first time in seven years will keep gilt yields lower for longer, increasing scheme deficits which are already at record highs.

Although the central bank's move to reduce the base rate to 0.25% and extend its quantitative easing (QE) programme was widely expected, the implications for defined benefit (DB) pension funds are ...

To continue reading this article...

Join Professional Pensions

Become a Professional Pensions Lite Member today

  • Three complimentary articles per month covering the latest real-time news, analysis and opinion from the industry
  • Receive important and breaking news stories via our two daily news alerts
  • Hear from industry experts and other forward-thinking leaders

Join now

 

Already a Professional Pensions
member?

Login

More on Investment

Scottish Widows partners with Robeco on responsible investment

Scottish Widows partners with Robeco on responsible investment

Partnership will see the creation of equities indices in developed and emerging markets

Martin Richmond
clock 21 January 2025 • 2 min read
GMPF partners with L&G on affordable housing investment

GMPF partners with L&G on affordable housing investment

LGPS fund invests £100m to deliver affordable housing in the North West of England

Martin Richmond
clock 20 January 2025 • 2 min read
Partner Insight: Pensions find new sources of long-term cash flows

Partner Insight: Pensions find new sources of long-term cash flows

Insights from Nuveen's 2024 EQuilibrium survey

Romina Smith and Sophie Ballard, Global Client Group at Nuveen
clock 20 January 2025 • 4 min read
Trustpilot