Proactive Investors -
- FTSE 100 expected to open higher
- Frasers takes 18.9% stake in Ao World (LON:AO)
- CVC/Francisco withdraws bid for Network (LON:NETW) International
BoE's Haskel warns of further rate rises
A rate setter at the Bank of England thinks further rate rises might be needed to tackle stubborn inflationary pressures.
Jonathan Haskel, a member of the Monetary Policy Committee, said that further increases cannot be ruled out because prices are still rising faster than the BoE’s 2%.
“We are monitoring indicators of inflation momentum and persistence closely,” he wrote in the Scotsman newspaper.
“My own view is that it’s important we continue to lean against the risks of inflation momentum, and therefore that further increases in interest rates cannot be ruled out.”
The remarks back up expectations that the Bank of England is likely to increase borrowing costs again this month and probably through the summer.
The MPC has hiked rates from near zero at the end of 2021 to 4.5%, and markets anticipate a peak around 5.5% later this year.
The US Federal Reserve is expected to pause its series of interest rate increases at its meeting this week while the ECB is likely to raises rates at its meeting on Thursday. The Bank of England will reveal its monetary policy call the following week.
CVC pulls out of the running for Network International
The battle to buy Network International Holdings PLC (LON:NETW) is down to one after CVC Advisers Limited pulled out of the running.
CVC and Francisco Partners Management made an initial 387p per share for Network International in April before being trumped by a higher bid from Canada’s Brookfield Asset Management (NLB:BAM).
Brookfield firmed up its proposal Friday last, making a 400p per share offer, which Network International has accepted.
Network said it considered the terms “fair and reasonable” and will recommend shareholders accept the offer, while Brookfield said it considers Network to be a strong strategic fit.
Brookfield is a leading global alternative asset manager with more than US$825bn of assets under management across real estate, infrastructure, renewable power, private equity and credit.