Expect more countries to cut rates below zero - Pattullo

Henderson's John Pattullo believes that more countries will cut their base rate of interest below zero as currency wars intensify.

Pattullo (pictured), who manages the firm's Strategic Bond fund and Diversified Income trust, said other countries are likely to follow Switzerland and Denmark's lead in moving interest rates into negative territory. Both Switzerland and Denmark have slashed rates this year in a bid to aid their efforts to prevent their currencies from appreciating against the euro - though Switzerland's move proved ineffectual given its simultaneous decision to remove its cap on the franc. Pattullo said: "Twelve central banks have lowered their rates this year. More countries will move to negative ra...