“A continuingly low interest-rate environment is one of factors contributing to Vanguard’s view that stock and bond market returns will be relatively subdued over the next decade.”
Earlier this week, Andrew Bailey, the Bank of England’s Governor, raised concerns about a potential increase in interest rates after the Monetary Policy Committee meeting.
In the latest IHS/Markit Composite Purchasing Managing Index (PMI) survey, the UK’s economy was found to have improved slightly in October, from a PMI of 54.9 to 56.
Commenting on the PMI survey, Mike Owens, Global Sales Trader at Saxo Markets, outlined why the country’s latest economic developments prove an interest rate hike is all but certain.
Mr Owens explained: “The survey shows a pick-up in growth this month, led by the service sector.