When the boat comes in

摘要

Despite the decision to keep interest rates pegged at 5%, the market seems prepared for a further upward shift in corning months, and this raises the question as to whether rates will stick above 5% next year, rather than dropping. So, most advisers, including ourselves, will be reviewing their assessment of rates going forward. Research suggests that the real rate of interest - the headline rates adjusted for changes in the value of money - is around the lowest point since the Peasants' Revolt. Against the background of relative economic stability, low inflation and low interest rates, directors of finance in the public sector will be scanning the horizon for gathering clouds.