In our regular feature Seven Investment Management (7IM) look forward to what the month ahead might hold.
United Kingdom - Fixed Income
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% by 2013.
Given the gloom on the high street and government cuts this view seems pessimistic, but with oil prices high, an uptick in inflation does seem likely.
To complicate the interest rate picture, wage growth data has surprised on the upside with growth faster than expected at 2.3% in May.