Global Outlook 2024 Report

Newsletter

Like this article?

Sign up to our free newsletter

Interest rate rises will be for the right reasons

Related Topics

Man GLG's Henry Dixon reacts to the UK General Election result…

It’s been an extraordinary election, and clearly the result is pro-growth. While utilities are rising today in reaction, I actually don’t think they will benefit much further. The real winners are the banks, which we as investors can now look at in a much more favourable light.
 
You can’t underestimate the confidence banks will be feeling now in terms of their futures, and this could be an inflexion point for them, potentially drawing a line under PPI claims, bringing an end to the fine culture, and creating a more constructive outlook generally.
 
It is also now abundantly clear interest rates will rise for the right reason – namely because the recovery is continuing to gain strength. There had been a real concern that international investors would have been spooked by a left of centre government, causing sterling to fall and therefore forcing the Monetary Policy Committee into action with a series of ‘bad’ rate rises needed to stave off inflation. 
 

Like this article? Sign up to our free newsletter

Most Popular

Further Reading

Featured