A more inflationary environment over the medium term is likely to have profound implications in terms of how different asset classes behave and are correlated, and this will have repercussions for the way DC investment strategies are constructed.
The Bank of England (BoE) has voted unanimously to increase its purchase of UK government bonds by £150bn and to maintain rates at 0.1%, shunning rumours of a move towards negative interest rates.
The US Federal Reserve sent out "strong, powerful guidance" on Wednesday (16 September), as it predicted interest rates would stay near zero until at least the end of 2023.
Pension schemes significantly heightened their interest rate and inflation risk hedging in the second quarter of the year, according to BMO Global Asset Management.
The debate concerning negative interests in the UK has now become “very real” after the UK Consumer Prices Index (CPI) 12-month inflation rate dipped to 0.8% in April from 1.5% in March, recording its lowest reading since August 2016 and putting it on...
Covid-19 has presented the ONS with significant problems calculating inflation during lockdown. Latest Institute for Fiscal Studies research examines the challenges faced.