Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Lord Turner: rates likely to stick at around 2% for 'long time'

Lord Turner says we are at a turning point for UK interest rates.

The Bank of England may have opted to keep rates on hold at today's monthly meeting, but the former head of the Financial Services Authority does not believe it will continue to keep rates at the historic low of 0.5% for much longer.

However, he told a packed hall at the Wealth Manager Conference and Awards this morning he would not be surprised that when rates do go up they stay at the 2/2.5% level for 'quite a long time' because of the 'deep debt overhang period' we are in.   

He also warned if the UK does not rebalance soon it will have an economic model simply based on house prices and unsustainable debt.

Turner went on to talk about a Japanese-like deflation threat in Europe and the problems in China. 

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play JPM’s Negyal: Back divis to temper EM volatility

JPM’s Negyal: Back divis to temper EM volatility

Omar Negyal, co-manager of the JPMorgan Global Emerging Markets Income trust, says a dividend approach to emerging markets reduces the volatility of investing in the asset class.

Play WMR: Why Russia will lose this war

WMR: Why Russia will lose this war

Author and journalist Adam Lebor believes a perfect storm is brewing when it comes to the Russian economy. .

Play WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

Chief economic adviser to London mayor Boris Johnson outlines the geo-political risks in Asia and explains why the risk of another eurozone crisis must not be underestimated.

Your Business: Cover Star Club

Profile: The adviser that tempted Robin Minter-Kemp on board

Profile: The adviser that tempted Robin Minter-Kemp on board

It is rare to meet an impassioned individual who is willing to bang the drum for investment advisory right now

Wealth Manager on Twitter