The Bank of England’s governor is being too aggressive when he suggested that there may be a rise in the interest rates. This has been reported by BBC, one of the leading authorities in the world when it comes to global market turmoil.
Dominic Rossi’s point of view in this situation
The global chief investment officer of equities at Fidelity, Dominic Rossi, had stated that Mark Carney had probably confused the markets. According to him, the bank has not been all that great at understanding the situations regarding inflation and why it had been extremely low. He was also recorded as stating that it was highly unlikely that the interest rates would rise in the near future.
However, he did mention deflation to be a higher risk as compared to inflation. What Dominic Rossi had to say definitely had considerable amount of weight, especially considering that Fidelity is a huge fund manager in the world and takes care of numerous clients and their investments.
Expectations of rate
Mr. Rossi was recorded as saying that the inflation forecasts made by the Bank of England have been extremely poor and therefore, the statements made by them have been a little too aggressive. Add to this the fact that the bank is currently rolling back from another forecast of interest rate. The fact that our world is quite unpredictable and anything can cause our economy to derail should also be paid attention to and therefore there are many other factors that need to be considered in the process.