Era of 'growthflation' is a strong opportunity for value investors

The Bank of England's decision to raise rates to 0.25% is a strong indication that they no longer see inflation as transitory. The concern which remains is, in absence of a huge shock to the global economy, they may have fallen far behind the curve. With economic growth also expected to continue - investors must brace themselves for a new market paradigm; the era of growthflation. Growthflation occurs when you get a spiral of strong demand leading to higher prices and wages leading to further demand strengthening. In this scenario, central banks should be expected to tighten monetary pol...