Merryn Talks Money Inflation, BoA and Gold's Time to Shine
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Jun 18, 2025 Explore the current state of UK inflation and its surprising effects on public perception and interest rates. Discover insights from the Bank of America Global Fund Manager Survey, revealing a preference shift towards international stocks. Delve into the growing interest in gold as a safe haven amid potential recession fears and economic uncertainty. Lastly, consider the shifting dynamics of private equity and the public markets, signaling a possible resurgence in transparency and governance as key investment factors.
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UK Inflation Above Target Long-Term
- UK inflation remains stubbornly above 3%, possibly for nearly five years continuously.
- This persistent inflation level may influence public behavior and Bank of England's monetary policy.
Bank of England Ignores Policy Failures
- Bank of England's failure in managing inflation policies is acknowledged but seemingly ignored internally.
- They act as if the inflation target is 2% though reality suggests it's closer to 3%.
Financial Repression Limits Debt Control
- Financial repression assumes higher inflation than interest rates to tackle UK debt.
- Without spending control, sustained inflation above target is ineffective in managing debt.