Inflation Archives - Moore Stephens Financial Services

Inflation – A scourge from times gone by

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For many in our society the term inflation, the measure by which prices are rising, is simply an oft quoted statistic that bears little relevance to people’s lives. However, those of us old enough to remember the 1970’s and 80’s are likely to have a very different view. Inflation was a constant concern during those years and was sometimes out of control leading to several economic crises. Over the last…

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Japan – why negative interest rates can be good for investors

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The Bank of Japan announced negative interest rates on Friday 29th January 2016 thus causing a rally in Japanese equities and a comparative fall in Japanese bonds. Inflation is not rising sufficiently to keep pace with the target figure of 2% and rather than allow confidence in the Japanese stock market to further falter, the Bank of Japan announced additional measures to stimulate the economy. The immediate aftermath of that…

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Interest rates are going up but Cash ISA rates are going down

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Last week Mark Carney, Governor of the Bank of England, pronounced that interest rates in the UK will shortly have to rise. Friday 13th June saw stock markets fall significantly in the wake of this comment. As with last year’s trepidation over the US tapering Quantitative Easing, Carney’s comments caused similar concerns in investment markets. The question is why such comments are causing such dramatic results when it is widely…

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