Weak growth and falling inflation mean investors should expect more quantitative easing by the end of the year, says Fidelity's asset allocation director Trevor Greetham.
A cooling global economy and an impending austerity squeeze in Britain will make the Bank of England (BoE) wait well into next year before hiking interest rates, a poll of 60 economists suggests.
Interest rates could rise substantially to 8% within two years to stave off soaring inflation, new research suggests.
UK inflation dropped marginally to 3.1% in July but remains well above the Government's 2% target.
Eurozone annual inflation hit a 20-month high in July at 1.7%, figures from Eurostat show.
The Bank of England has revised down its forecast for UK economic growth and expects inflation to remain above the 2% target until the end of next year.
The Bank of England has revised down its forecast for UK economic growth and expects inflation to remain above the 2% target until the end of next year.
A base rate of 0.5% will begin to look like the 'new normal' with hikes unlikely until 2014, according to a leading economic forecaster.
Monetary Policy Committee inflation hawk Andrew Sentance has once again voted for a rise in UK interest rates.
Mike Riddell, a member of the highly-regarded M&G bond team, highlights the worrying aspects of June's inflation 'fall'.