In our regular feature Seven Investment Management (7IM) look forward to what the month ahead might hold.
United Kingdom - Fixed Income
The IMF paper calls it “financial repression”. This is where the government channel savings to themselves cheaply that could go elsewhere.
Base rates at 0.5%, gilts at 3% and inflation at 5% are a stealth tax on savers and pension funds that looks set to continue for some time to come.
The Monetary Policy Committee’s forecasts are for inflation to gradually rise through to the end of the year and then fall back to 2% ...