Ruffer duo: Why 'fiscal activism' in the UK is inevitable

Expect market volatility to pick up

Hamish Baillie and Steve Russell, managers of the £354m Ruffer Investment Company, said they expect to see fiscal expansion introduced in this year's Autumn Statement as the Bank of England runs out of monetary policy measures to prop up the economy.

In their monthly report, the managers note the impact last month's interest rate cut and the restarting of the Bank of England's QE programme have had on the UK stockmarket, with the FTSE All-Share rallying around 11% from the day of the referendum to the end of August. However, Baillie (pictured) and Russell said the real work starts now and there is a strong possibility for fiscal expansion this autumn.  The duo said: "A further interest rate cut...