Rising inflation sparks UK recession fears – ‘The ducks are quarreling’ | Personal finance | Finance

“But, for those looking for a ray of light in these numbers, slower wage growth could mean that the current inflationary push is proving somehow lived through – easing once shortages of raw materials and supplies caused by the pandemic and the war in Ukraine will no longer be taken into account.

“That certainly seems to be the Bank of England’s hope given last week’s more modest 0.25% rate.”

Rob Morgan, Chief Investment Analyst at Charles Stanley, commented: “Clearly inflation is no longer ‘transitory’, but the unanswered question is how embedded inflation has become. Long-term inflation expectations are rising, leading the Bank of England to become more interest rate hawkish.

“This has hampered bonds, as the stream of income looks less attractive and investors are demanding a lower price to buy them. A similar picture is being painted in the equity market, as future earnings are worth less in current terms if inflation is higher.



Source link

Denial of responsibility! newsnaveen.online is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – admin@newsnaveen.com. The content will be deleted within 24 hours.

Similar Articles

Most Popular