No rate rises next year: Managers turn dovish as data disappoints

Leading fund managers have become more cautious about their expectations for interest rate hikes, with many now expecting any movement in base rates to be postponed until at least 2016.

Despite recent guidance from the Bank of England hinting rates could rise in Q1 next year, more and more investors are now pushing back their own internal forecasts following recent volatility and weak data. Former Ignis bond fund manager Chris Bowie, who joined TwentyFour Asset Management this summer, said he does not now expect to see a rise in 2015. He said: "Earlier this year I would have said there was a real possibility rates would rise in the first quarter of 2015, but that is becoming far less likely. I am sanguine on inflation and there is no wage growth, so an interest rate ...