Fund manager's comment/Mark Parry
On 2 August, the Bank of England's Monetary Policy Committee surprised many people by cutting base rates to 5%. Was this, as some were quick to point out, a cut too far, or a correct realisation that rates were simply too high? The subsequent positive reaction of the gilt market would seem to suggest the latter, but those of us with even short-term memories can hardly forget the warnings of the dangers of fanning the flames of the 'two-speed' economy by cutting rates. Perhaps more telling is the sharp change in future rate expectations. Money markets have moved from pricing in a seri...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes