Many are worried about the UK inflation outlook as a result of a weaker pound. Core inflation rose from 1.5% in 2008 to 3% in 2011 after the pound fell. But inflation was also under attack from higher VAT and a surge in commodity prices. So we see a more gradual increase than consensus this time around.
Those who follow the utterances of finance professionals with gusto will have noticed that it has become de rigueur this summer to share your holiday reading list. Those waiting in eager anticipation of the LGIM Asset Allocation team’s holiday books, or looking for some inspiration this bank holiday weekend, need wait no longer!
Directors from 8/12 Federal Reserve districts are now pushing for an increase in the discount rate. That includes the four regions whose presidents are full voting members of the FOMC for 2016 . The market is still only priced for a 50% chance of a rate hike by December, but the clamour from within the Federal Reserve system is now notably louder than at the same stage last year.