Giles Marriage, investment manager and director of institutional sales at Thesis Asset Management, looks at three of the most likely inflation scenarios the UK is facing.
The manager said rising UK inflation coupled with modest economic growth could make returns harder to come by in the coming years, more so than is currently predicted by many investors. He has detailed three inflation scenarios including stagflation, inflation fuelled by Trumponomics and 'twilight zone' inflation. Thesis cuts back UK exposure in anticipation of 'referendum hangover' With the UK inflation reaching 1.8% in February, its highest level since June 2014 and set to rise to above the Bank of England's target of 2% within a year, Marriage said stagflation is the least lik...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
!['I do not think the Bank will be able [to lower rates] because I do not think inflation will come down much further or much faster. I think we are stuck with a fairly sticky inflation situation,' she said.](https://image.chitra.live/api/v1/wps/4f6ccd8/e30bef9b-445c-417a-ba61-becfaf9ed6fb/19/bank-of-england-2-323x202.jpg)
