U.K. REITs: We Upgrade Our Outlook to Neutral

The Bank of England (BOE) has paused raising its key interest rate after 14 successive hikes since November 2021. In view of moderating inflation and weak economy, we think the U.K. interest rate hike in the next six to 12 months will be minimal (if there is any). We expect interest rate to be flattish or slightly increase in Q4 2023 and 2024. This should be positive to the share price trajectory of the U.K. REITs, in our view.