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Base Rate staying high till 2025

Journalist: Callum Mason, i

ended 30. November 2023

The OECD has today said the bank of england base rate may not decrease until 2025.

I am seeking comments on what this means for people's pension savings. Does it mean that people need to take less risk with their investments - given cash is likely to be a good return?

Should people change their investment strategy at all?

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Michelle Boakes
Director and Chartered Financial Advisor at Verve Financial
Whilst the news that interest rates may remain at this higher level for longer is great for cash savings, I would caution against investors making major changes to their investment strategies solely based on interest rate movements. The optimal investment portfolio for someone's pension is highly personal and depends on an individual's specific financial situation and risk tolerance.

Barring a significant change in personal circumstances most clients will be best served sticking to a long-term diversified investment plan aligned with their goals. Attempting to time the market rarely works well for people.