Is UK inflation is ‘finally coming to heel’? CPI data falls to 3.4% for February
Figures published one day before the Bank of England’s Monetary Policy Committee meeting
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Figures published one day before the Bank of England’s Monetary Policy Committee meeting
Path towards the 2% target is more turbulent than many expected
UK equity strategies suffered £14bn net outflows over the year
It can be ‘difficult to distinguish between a bank and an insurance company’
It could be said that 2017 marked the beginning of the end of easy money as central banks started to move towards a tighter policy towards quantitative easing and interest rates. So, what is to come next?
Interest rate volatility has spiked and investors are urged to stay away from bonds with long maturities, especially in developed markets, according to Allianz Global Investors’ chief investment officer, Malie Conway.
European Central Bank president Mario Draghi delivered a relatively short address after the October governing council meeting on Thursday which was light on substance, but there was something in his remarks that may worry investors.
With central banks loosening their belts so much comes the risk of policy makers getting caught with their trousers down.
The ultra-loose monetary policy pursued by central banks since the financial crisis has implied an unprecedented fall in discount rates, which has led to a massive front-loading of returns: not only for bonds, but also for equities. Does this mean you should take your profit now and sell?
The ECB’s latest salvo in the fight against the prospect of deflation was initially met positively by markets. But, a lack of a clear message that the Bank will cut rates further from here sent markets falling again almost as quickly.
The expected 10 basis point rate cut by the European Central Bank this week would provide a “big boost” to peripheral sovereign markets such as Italy, according to Tanguy Le Saout, head of European fixed income at Pioneer Investments.
Investors will remember 2015 as a year spent trying to guess what major central banks around the world would do or say next.