L&G's Hodges predicts interest rates to drop to 2.75%

Interest rates will fall as low as 2.75% next year according to L&G's Dynamic Bond Trust manager Rich...

Interest rates will fall as low as 2.75% next year according to L&G’s Dynamic Bond Trust manager Richard Hodges. The manager has been forecasting interest rate cuts more extreme than market consensus for some time. He believes rates at this level are imperative to the stabilisation of the financial systems. “Over the past 12 months, we have moved our expectations of interest rate levels down further and more and more people can now see the same value as we do. This helps enhance our performance as we are already positioned to benefit from this. He forecasts interest rates will go bel...