L&G's asset allocation team predicts the most likely date for an interest rate rise will be May 2015, despite a clash with next year's general election.
In a webcast for investors, L&G multi-index manager Justin Onuekwusi (pictured) and L&G economist James Carrick shared their views on the economy and fund positioning. Asked when interest rates would rise, Carrick said he expected they would increase next May when the Bank of England could time the move with a quarterly Inflation Report. However, the team's views are contrary to market consensus that rates will remain low until 2016. Carrick said: "We have low inflation and a stagnant housing market so February would be far too early. May will be plausible as we will have had time ...
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