The jeopardy for banks in Kwarteng’s City chaos
Banks have been waiting years for a rising interest rate environment to boost revenues and margins. That time has finally come. Just not how they expected.
The Bank of England base rate is already up from 0.25 per cent at the start of the year to 2.25 per cent. Since Kwasi Kwarteng’s “fiscal event” last Friday, markets have been betting it could hit 6 per cent next year.
This should be a bonanza for the big banks. Analysts are overwhelmingly positive. Investors, however, are not.
This story originally appeared on: Financial Times - Author:Cat Rutter Pooley
