Press comment: Expect inflation to decelerate in 2020 as BoE set to hold rates again


If you are covering the latest inflation figures released today by the Office for National Statistics, please find below commentary from Hinesh Patel, portfolio manager at Quilter Investors:

“It is not surprising to see inflation stubbornly refusing to budge from its current position, well below the Bank of England’s 2% target. Our models show that inflation peaked in March of this year and we fully expect it to decelerate a little further in 2020. The recent surge in sterling, despite the paring back following Boris Johnson’s commitment to leave the EU by the end of next year, alongside an anticipated and aggressive discounting environment in retail will keep a firm lid on goods inflation.

“Meanwhile, forward looking employment indicators have been soft at best, meaning the service sector should also see a period of low inflation. All of this sets up for a less hawkish Bank of England meeting tomorrow where rate changes will be kept on ice for when we see the true impacts of any Brexit deal feed its way into the economy.”

 

Notes to Editors:

About Quilter plc:

Quilter Investors is part of Quilter plc. It provides multi-asset investment solutions designed for advised clients in the UK and internationally and manages £20.3 billion on behalf of its investors (as at 30 September 2019).

Quilter plc is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

Quilter plc oversees £118.7 billion in investments (as at 30 September 2019).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions; and discretionary fund management.

The business is comprised of two segments: Advice and Wealth Management and Wealth Platforms.

Advice and Wealth Management encompasses the financial advice business, Quilter Financial Planning; the discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business.

Wealth Platforms includes Old Mutual Wealth UK platform; Old Mutual International, including AAM Advisory in Singapore; and the Old Mutual Wealth Heritage life assurance business.

The Quilter plc businesses are being re-branded as follows: 

  • Quilter Financial Planning (previously Intrinsic)
  • Quilter Private Client Advisers (previously Old Mutual Wealth Private Client Advisers)
  • Charles Derby Group (becoming Quilter Financial Advisers)
  • Quilter Financial Adviser School
  • Quilter Cheviot
  • Quilter Investors
  • Old Mutual Wealth (becoming Quilter Wealth Solutions in 2020)
  • Old Mutual International (becoming Quilter International in 2020)

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This communication is issued by Quilter Investors Limited (“Quilter Investors”), Millennium Bridge House, 2 Lambeth Hill, London, United Kingdom, EC4V 4AJ. Quilter Investors is registered in England and Wales (number: 04227837) and is authorised and regulated by the Financial Conduct Authority (FRN: 208543).

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