We use cookies on our website to enhance your browsing experience. By continuing to use this site without changing your settings you consent to our use of cookies in accordance with our cookie policy. To learn more about cookies, how we use them on our site and how to change your cookie settings please view our cookie policy.

Close Cookie Bar

What have we been up to


Donec varius pellentesque metus, at vehicula magna egestas quis. Sed purus ipsum, vehicula id libero laoreet, posuere ornare urna. In eu nulla leo. Nullam pellentesque dolor nec scelerisque consequat.

UK swap rates rise following BOE Inflation report

Share on Linkedin
+ -
If you thought this page is useful to your friend, use this form to send.
Friend Email
Enter your message

Five-year swap rates rose 10bps to 1.3450% and the pound jumped a cent against the US dollar to $1.40 following the release of the BoE Inflation Report this afternoon.  

Whilst the vote to leave rates on hold was unanimous, the wording of the minutes were hawkish and a hint of an earlier rate rise, and potentially to a greater extent.  The language was firm in its intention; that inflation above the 2% target will not be tolerated

During the press conference, Carney cited very little spare capacity, strong global growth and increasing confidence in wage inflation growth in support of the need to raise rates.  The market is now pricing in a 70% chance of a rise by May and a 100% chance of a rate rise by August. The market implied 3m LIBOR rate for February 2019 is now at 1.03% versus today’s pre-Inflation report level of 0.53%.  

The risk of rising rates has definitely been low down the priority list for many borrowers; seeing any hedging decision as too high an opportunity cost. This sanguine view is definitely changing as higher rates now has a real impact; feeding through into higher interest costs.  

JCRA are seeing an increased number of clients seeking to mitigate this risk through a variety of risk management strategies and would be delighted to assist in helping your business identify and manage your exposure to rising interest rates.




Interest Rate Cap Value and current volatilities environment

11thJuly 2017

The concept of volatility is essential in finance; from Value at Risk to derivatives pricing, it all relies to a significant...

read more

JCRA Review 2015/2016

23rdFebruary 2016

In the same spirit of ‘Timehop’, a time capsule of your online presence, our...

read more

How can we help you

Have you got a question about how you hedge your financial risks, or structure and arrange your debt?

Find out how we can help you by contacting us today.


contact us

Stay Connected

Would you like news and views on local and global financial markets?

Sign up today to receive news straight to your inbox.

At JCRA the privacy of your personal information is of utmost importance to us. You can find details in our Privacy Policy and Terms of Use.