The outlook for inflation and interest rates and how schemes should respond

Robert Scammell looks at interest rates and inflation and the impact on pension funds

clock • 4 min read
The outlook for inflation and interest rates and how schemes should respond

Inflation has been falling in developed markets since the end of last year. In the US, progress has recently stalled despite significant monetary tightening and in the UK, while inflation itself remains elevated, the outlook for it is perhaps slightly better; peaking at 11% in October 2022, it has since fallen to 10% and is expected to continue falling over the next year with financial markets anticipating CPI inflation being around 3% by February 2024.

The reasons for the fall in UK inflation are manifold but can be boiled down to two key influences.   Firstly, to state the somewhat obvious, for inflation to go up prices need to rise! In 2022,...

To continue reading this article...

Join Professional Pensions

Become a Professional Pensions Lite Member today

  • Three complimentary articles per month covering the latest real-time news, analysis and opinion from the industry
  • Receive important and breaking news stories via our two daily news alerts
  • Hear from industry experts and other forward-thinking leaders

Are you a trustee, investment consultant or in-house pension and benefit scheme professional? You can apply for full complimentary access here

Join now

 

Already a Professional Pensions
member?

Login

More on Investment

Savers believe pension funds should back infrastructure and UK growth

Savers believe pension funds should back infrastructure and UK growth

Research from IFM Investors suggests public backing for infrastructure investment

Alex Levy
clock 12 October 2026 • 3 min read
M&G launches first LTAF in bid to widen access to private credit capability

M&G launches first LTAF in bid to widen access to private credit capability

Targeting net returns of SONIA plus 5% per annum over five years

Jonathan Stapleton
clock 12 October 2026 • 2 min read
Look to nature for true diversification

Look to nature for true diversification

Tony Dalwood says forestry and agriculture can offer genuinely different sources of return

Tony Dalwood
clock 05 October 2026 • 3 min read
Trustpilot