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Valenti International: How Long Can Rates Remain Anchored?

Todays Date: October 23, 2018

“Valenti International”: Inflationary pressures could force central banks to raise interest rates sooner than expected.

“Valenti International” has told clients that growing inflationary pressures may force central banks to hike interest rates before their economic recoveries become more sustainable.

In its latest client newsletter, the firm’s analysts warned that official inflation figures that strip out fuel and food costs should not be regarded as an accurate reflection of rising prices. “Valenti International” believes that most people define inflation as the rising cost of things like fuel and food and, to the average consumer, the cost of both of these items is rising.

“Regardless of government figures, it is difficult to ignore when the price of essential items are rising. Countries like the UK are net importers of oil and, as sterling’s value against the dollar has tanked, it is inevitable that converting the currency into dollars – in which crude oil is denominated – will almost certainly help to keep inflation at high levels. At some point, the Bank will be forced to raise rates and that will have a negative impact on businesses and the consumer not to mention the housing market which still remains significantly overvalued”, said one “Valenti International” analyst on the phone.

The firm has standing advice to acquire precious metals and defensive stocks as a way of preserving purchasing power.

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