Falling gilt values 'greatest threat' to investors

clock •

The dangers posed to savers and investors by falling gilt values far outweigh the risk of rising inflation, according to Martin Bamford of Informed Choice.

The surge in the Consumer Price Index to 2.9% in December marked its steepest spike since records began, heightening concerns rising inflation will threaten the country's economic recovery and bring misery to savers. Speculation the next government could raise VAT to 20% and hike interest rates in an effort to reduce the country's huge budget deficit has further stoked concerns. But such fears have been cast aside by Bamford, who thinks savers and investors have more pressing problems. "I do not think inflation will be a huge issue - there is so much spare capacity in the economy,"...

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

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Fahad Hassan: When good news becomes an inflation problem

Fahad Hassan: When good news becomes an inflation problem

'Markets have been adjusting to the risks through valuations all year'

Fahad Hassan
clock 29 September 2026 • 6 min read
Healey promises 'new age of industrialisation' ahead of Budget

Healey promises 'new age of industrialisation' ahead of Budget

Keeps quiet on personal taxation, pensions or savings at Labour’s conference

Isabel Baxter
clock 28 September 2026 • 2 min read
MPs warn policymakers to stop using OBR as scapegoat for tough fiscal decisions

MPs warn policymakers to stop using OBR as scapegoat for tough fiscal decisions

Treasury Committee report

clock 23 September 2026 • 2 min read