You are here: Home - Investing - Experienced Investor - News -

Inflation and interest rates a greater concern than Brexit

0
Written by:
13/11/2017
Investors see rising inflation and low interest rates as a greater threat to their wealth than Brexit, according to a survey from Rathbone Investment Management.

While 42% of investors surveyed considered the prospect of rising inflation or low interest rates as major threats, just 30% saw Brexit as a significant obstacle to building and maintaining wealth. This neglects the relationship between Brexit and inflation.

The spectre of mounting inflation has raised concern for many investors – particularly those who hold a substantial amount of wealth in cash. Of those surveyed, just over a quarter (26%) said they had already been negatively affected by the rising rate of inflation and a further one in five (21%) were concerned that it would impact them in the near future.

At the same time, 69% of investors surveyed claimed not to consider Brexit as a substantial threat to their finances, in spite of several economic bodies predicting that Brexit will have a negative effect on the UK economy and consumer finances.

However, Brexit and inflation/interest rates are inter-linked. The devaluation of sterling linked to Brexit has contributed to today’s high inflation figures. It also contributed to the fall in interest rates from 0.5% to 0.25%. As such, it suggests that many do not recognise the knock-on effects of Brexit.

Robert Szechenyi, investment director at Rathbones, said: “Brexit has dominated the political and economic agenda for the last year, and with negotiations starting to heat up, that’s unlikely to change any time soon. But in this climate of heightened uncertainty, it’s encouraging to see investors appreciate that there need not be a ‘bad’ Brexit scenario as far as their investments are concerned.

“So long as investors are vigilant and prepared to adapt and make sure their investment portfolio is diversified, they should be able to make positive investment choices which mitigate both the risks of Brexit and inflation.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

Coronavirus and your finances: what help can you get in the second lockdown?

News and updates on everything to do with coronavirus and your personal finances.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
property ladder, Help to Buy ISA
Think twice before rushing to switch mortgage deals, warns Royal London

Homeowners should think twice before incurring exit charges to secure a fixed rate mortgage, says insurance group Royal London.

Close