With MPC minutes having today revealed growing concerns about UK inflation it suggests that, alongside rising interest rates, investment strategists are going to have plenty to ponder by the time the summer fades.
Consumer price inflation in the United Kingdom crept down a fraction in June to hit flat zero from 0.1%, according to the Office for National Statistics.
The global economy is teetering between recovery and overheating, says Fidelity’s Eugene Philalithis, and investors should prepare for rising inflation by taking on hybrid assets.
Despite the ongoing Greece sage, deflation worries in the eurozone are increasingly looking like a thing of the past according to Moody’s Analytics.
The Bank of England’s monetary policy committee is still united in holding the base rate at 0.5%, according to minutes from the last meeting released today.
The United Kingdom has crept quietly out of deflation with a 0.1% rise in prices being recorded in May, the Office for National Statistics said.
The prevailing consensus has settled around the expectation that the first UK interest rate hike is a considerable way off, but there are reasons to think this could quickly change once again.
Slowing growth numbers in both Brazil and India have raised expectations of a more dovish monetary stance in both countries Schroders said on Friday.
Finsbury Growth and Income Trust manager, Nick Train believes the firm’s strategy will be sensitive to movements in the oil price over the short term.
Fixed income investors in emerging markets should sacrifice positive carry to prepare for an impending taper tantrum, according to BlackRock’s Sergio Trigo Paz.
Gold is set to benefit from a continuation of global quantitative easing, says Thomas Miller Investment, prompting the manager to consider branching out into a market that it would traditionally avoid.
Expectation is mounting that China is planning its own version of quantitative easing and investors weighing up how to play the world’s most populated country may struggle to assess the situation.
