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 ...

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