Inflation

The Reserve Bank of India has raised interest rates to fight rising consumer prices in the country.

The UK will be at risk of returning to recession if the Bank of England raises interest rates, says MAM Funds' Martin Gray.

Holding UK interest rates at crisis levels is "inappropriate" as rising inflation becomes a bigger concern than a double dip recession, says Julie Dean at Cazenove.

The Monetary Policy Committee's forecasts for UK real growth are too optimistic, while concern mounts over its inaction in raising rates to stem rising inflation, says Threadneedle's Mark Burgess.

Several fund managers have warned the Bank of England is underestimating inflation in the UK, and they expect it to be higher for longer than predicted.

Investors' growing appetite for emerging market debt is a cause for concern as the asset class could be set for a correction, says Rathbones' David Coombs.

Cazenove's Marcus Brookes may start buying government bonds "pretty aggressively" if too much inflation is priced in.

Bank of England deputy governor Charlie Bean has defended MPC policy in the face of persistently high inflation, warning the economy could be on the verge of a "durable slowing".

ON ASSET ALLOCATION

The UK could be entering a "profoundly different" era of slow growth and high debt reminiscent of the economic ills engulfing Japan, says the BBC's economics editor Stephanie Flanders.