Bank of England (BoE) governor Mark Carney said in the latest quarterly inflation report that the base rate of 0.5% is unlikely to rise before unemployment tumbles to 7%. This is something not expected to happen until 2016. The jury is still out on what that means for saving, spending, and growth.
The detail Three ‘knockout' caveats included in the forward guidance render Carney's strategy conditional. It is dependent on inflation staying within 0.5 percentage points of the Bank's 2% target...
A number of pension schemes have been prompted to lock in gains with a move into bonds after the estimated deficit across FTSE 100 DB pension schemes improved by £36bn, over the 12 months ending 30 June last year, JLT Employment Benefits found.
HM Treasury has agreed in principle to give NEST a £329m contingent liability guarantee in the event of the master trust's wind up or closure.
AMP Capital has set up a dedicated team to help institutional investors, including pension funds, invest in infrastructure through direct equity allocations.