Carney throws kitchen sink at flagging economy

4th August 2016 - Commenting on the interest rate cut and new quantitative easing, Darius McDermott, managing director of Chelsea, said:

“This comprehensive package is an acceptance of substantial economic uncertainty, and an acknowledgement that, at least over the next two year period, things are going to be very challenging. The MPC is obviously worried about the possibility of recession and has pretty much thrown the kitchen sink at the problem.

“From an investment point of view, corporate bonds and bond proxies should all do well as a result of the action, as should our larger UK companies with dollar earnings. It should also offer some support to domestically-focused UK smaller and medium-sized companies, which would suffer more in a recession. In contrast, most cash savers will now be losing money in real terms.

"Elite Rated funds that should do well in this environment include Evenlode Income, Standard Life Investments Global Equity Income, Royal London Corporate Bond and MI TwentyFour Dynamic Bond."