You are here: Home - Uncategorized -

More fund managers expect interest rate hike in Q2

0
Written by:
15/03/2011

Expectations the Bank of England (BoE) and European Central Bank (ECB) will raise interest rates in the second quarter of 2011 have risen dramatically, a new survey of fund managers shows. According to the Bank of America (BofA) Merrill Lynch monthly European Fund Manager Survey, 40% of respondents now expect the BoE to raise rates from the current level of 0.5% in Q2 2011. An equal number of managers believe a hike will come in Q3.
Last month, just 17% of respondents expected a rate hike in Q2, with 31% forecasting rates to go up in Q3 and another third saying a rise was not likely until Q4.
The survey, which was conducted between the 4 and 10 of March, before the earthquake in Japan, also shows a dramatic shift in expectations of a rate rise in the Eurozone.
It found 72% of fund managers are now predicting the ECB will lift rates in the second quarter wheras no respondents had expected such a move the previous month.
The shift in sentiment comes after ECB president Jean-Claude Trichet earlier this month said the ECB may raise rates from their current record low of 1% at next month’s meeting.
Soaring commodity prices have been strengthening the case for higher interest rates in recent months.
Last month, three of the BoE’s nine-member Monetary Policy Committee voted in favour of raising interest rates, up from two members in the January meeting. High inflation, caused largely by rising prices for oil and other commodities, were among the factors cited by the three members in favour of higher rates.
Reporting from Sharecast

Related Posts

Tagged:

Tag Box

Debt

Pension

Spending

Financial fitness

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.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

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...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
Four in ten expect finances to worsen

Almost 45% of people believe that their financial situation will worsen over the next six months - an increase of...

Close