Investors should prepare for inflation to stay low

He is cautious on the outlook for riskier assets.

Mr Edwards said: "Since the financial crisis, the policies of low interest rates and quantitative easing have trained the market to buy risky assets.

"And the decision of the US Federal Reserve to not put rates up further this year has trained markets to like risk assets, so equities and risky bonds have gone up in value.

"But because risk assets have risen in value so much since that Federal Reserve announcement, while the actual facts about low growth have not changed, I don’t think you are being paid enough to take the risks."

Torcail Stewart, who runs the £950m Baillie Gifford Strategic Bond fund, said the portion of global GDP going to wages has declined over recent decades, and this means "there is little sign of the inflation coming though that people were worried about."