Investment expert Tom Becket has said central bankers are unlikely to increase rates, in spite of investors expecting a rise in the medium term.
Mr Becket, Psigma Investment Management’s chief investment officer, suggested central bankers would be unwilling to risk destabilising their economies through raising rates.
Instead, he predicted they would play it safe by avoiding making big decisions with regards to interest rates.
Recent comments by Andy Haldane, chief economist of the Bank of England, implied the UK’s interest rates might have to be cut further in spite of many onlookers predicting a rise this year.
“We don’t think this is going to happen and still expect the next UK rate move to be up, but what is absolutely clear from the Federal Reserve’s latest meeting, the Bank of England’s recent meeting minutes and the cut to further negative rates in Sweden this month, is that central bankers are either still in emergency mode or unwilling to potentially destabilise their economies through rate rises.
“This has been reflected in one of the most eye-opening weeks for asset markets in the last few years when nearly every asset I monitor went up strongly.”
