The Bank of England is "failing in its remit" to control rising inflation which could undermine demand for bonds, according to Artemis manager James Foster.
Speaking at a Cofunds roundtable yesterday, the manager of £529m Artemis Strategic Bond fund said the Bank has been slow to respond to high levels of inflation - a phenomenon rendering government bonds a "poor" investment. The Bank should follow the lead of the European Central Bank in raising rates, he said. "The Bank's job is to control inflation and not the political job of controlling growth," he said. "I think it is failing with its remit. It said inflation is temporary but how long is temporary?" Should inflation climb to 5% - as predicted by Bank governor Mervyn King - deman...
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