Newspaper article from our research archive:

Gloomy view from fund managers

INSTITUTIONAL fund managers are more pessimistic about inflation and prospects for the economy than they were last month, according to the latest Gallup/Smith New Court survey, writes Robert Chote.

Fund managers now expect inflation to be at 4 per cent by the end of next year, the top of the Government's 1-4 per cent target for the underlying rate of price increases. They are also more pessimistic about the pace of average earnings growth.

Base rates are expected to have risen from their current 5.25 per cent to 6 per cent by June next year, a less pessimistic prediction than that implied by the short- sterling futures market.

Fund managers remain confident that Japanese equities will ...

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