Threadneedle forecasts little respite from inflation

Quentin Fitzsimmons, head of government bonds at Threadneedle, says that as long as the Bank of England is “focused solely on inflation,” any further Base Rate cuts are highly unlikely. Key drivers of inflationary pressures such as fuel and oil prices are unlikely to ease, as Fitzsimmons predicts oil to remain at $100 a barrel, with anything above $90 continuing to be inflationary. There are, however, opportunities at an investment level. “Rising inflation is not good news for a traditional bond fund manager,” he says, “but more sophisticated funds that take advantage of the UCITS III reg...