Expect more countries to cut rates below zero - Pattullo

Alice Rigby
clock

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...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Bonds

Industry Voice: Green bonds - a powerful way to take climate action

Industry Voice: Green bonds - a powerful way to take climate action

Did you know that investing in green bonds is one of the most powerful ways to make a climate-positive impact ? Learn why green bond proceeds are putting the planet first.

Amundi ETF
clock 23 June 2022 • 8 min read
Fixed income is vital in fulfilling key functions, such as "diversification from equities, capital preservation and income".

Deep Dive: Pockets of hope for fixed income

'Easy to write off'

Elliot Gulliver-Needham
clock 17 June 2022 • 4 min read
Jason Simpson, senior fixed income strategist at SPDR

Winds of change: Reasons to look at investment grade credit

Areas to consider

Jason Simpson
clock 15 June 2022 • 4 min read
Trustpilot