Wyn Thomas - Axys Investment Management

Weekly Market Update – 20th October 2017

UK INFLATION RAISES QUESTIONS

This week the predictable rowing back from predictions of a rate rise, made with such certainty only a few weeks ago, has begun. The Governor is in
the awkward situation of having rising inflation – hitting a high of three per cent – and a precariously poised economy. Weaker than expected consumer
spending coupled with two new members of the committee who are committed rate rise sceptics means the balance has swung away from a hike for the
time being. This isn’t our first rodeo; the pattern of rising expectations followed by inconclusive data and ultimately zero rate hikes has been repeated
almost every quarter. Read more…