Our Views on the Markets and the Economy
Articles, investment updates and economic analysis
The pound has weakened recently. The change in market expectations that UK interest rates will peak at a lower level than previously expected has had the predictable impact on sterling that many (including ourselves) thought it would. UK policy rates, currently at 5.25%, are expected by the market to peak at 5.5%; three months ago, this was closer to a 6.25% peak. We think rates have now peaked, but it would not be a surprise if there was another hike.
The unintended consequences of aggressive monetary policy tightening in western economies continues to be a concern, both for the economic and financial market outlook.
Our CEO Charlotte Ransom answers a weekly question for readers of the i paper – helping them to better understand their investments and how to effectively plan their finances to achieve their long-term goals. Many of these questions are also highly relevant for Netwealth readers.
Oil prices have risen significantly in recent weeks. This is a double whammy for Western economies like the UK. It squeezes spending power and adds to costs at a time when growth is sluggish, and it pushes inflation up again, perhaps temporarily. Already the recent rise in oil prices has contributed to the markets expecting an increase in the annual rate of inflation in the next monthly data (due on September 20th) because of higher fuel prices.
Pension Awareness Week (11-15 September) is a government initiative (supported by Money Helper) to encourage pension holders, or those without a pension, to see if they could be doing more to safeguard their future. Even with a pension, a comfortable retirement is not guaranteed – and there is often more you can do to ensure it is in tip-top shape when you retire.
It’s a perennial question among those who have the means – should I invest or leave my money tucked away in a bank account? And it’s not always obvious what the answer should be. But dig a little deeper and you’ll see the arguments for investing now are still robust – and crucially, proven to stand the test of time.
Our CEO Charlotte Ransom answers a weekly question for readers of the i paper – helping them to better understand their investments and how to effectively plan their finances to achieve their long-term goals. Many of these questions are also highly relevant for Netwealth readers.
Here is a short take on the significant themes currently impacting global markets.
You don’t have to be imminently facing retirement to be retirement ready. But you can get a good idea if you are on track to achieve your goals – allowing you to change course or make subtle adjustments to your approach to maximise your future potential.
Where are we in the economic cycle, and what are the implications for monetary policy? This is perhaps the key current issue for financial markets. Attention is moving from a focus on inflation to what lies ahead for growth and the challenges this may pose for monetary policy.
Team Contributors
Gerard Lyons
Charlotte Ransom
Thomas Salter
Iain Barnes
Simon McConnell
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