Rate rises likely to peak in 2005 but inflationary outlook unclear

Conjecture: Fixed interest

The UK economy will continue to perform well if the Bank of England maintains its focus on keeping inflation down but the events in the US could could have a negative effect

With interest rates in the UK on an upward path, leading fixed interest managers from M&G, Barings and Henderson discuss exactly what this means for corporate bonds. Overall, they feel the current cycle of rate rises in both the UK and US looks likely to reach its peak in 2005 but there is less of a consensus on whether inflation is now under control. The trio of Jim Leaviss, Colin Harte and John Pattullo also tackle technical factors impacting on the corporate bond markets such as the switch out of equities by pension funds and life offices. IW: What is going to be the peak in UK intere...