PFS Conference: Bootle predicts inflation will 'collapse' by 2013

The Capital Economics MD says inflation will fall "below 0%" within three years. He also dismissed recent reports interest rates could soar to 8% by next year. "If anyone thinks interest rates will rise to 8% next year they can see me about it. I will offer it to them as a both ways bet! It's not going to happen." Bootle says UK official interest rates will remain at their current level of 0.5% for another four years. However, he warns investors against thinking gilts are a safe bet in the current economic environment, despite low yields. "My forecast for ten-year gilt yields...