{"id":52425,"date":"2022-02-17T07:01:12","date_gmt":"2022-02-17T07:01:12","guid":{"rendered":"https:\/\/finsbury-associates.com\/?p=52425"},"modified":"2022-02-20T14:02:49","modified_gmt":"2022-02-20T14:02:49","slug":"market-update-inflation-interest-rates-2022","status":"publish","type":"post","link":"https:\/\/finsbury-associates.com\/market-update-inflation-interest-rates-2022\/","title":{"rendered":"Investment Market Update 2022: Inflation &#038; Interest Rates"},"content":{"rendered":"\n[et_pb_section fb_built=&#8221;1&#8243; _builder_version=&#8221;4.14.7&#8243; _module_preset=&#8221;default&#8221; custom_padding=&#8221;15px|||||&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_row _builder_version=&#8221;4.14.7&#8243; _module_preset=&#8221;default&#8221; custom_padding=&#8221;20px|||||&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.14.7&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_text content_tablet=&#8221;<h4><b>Watch our Expert Investment Market Update Webinar from the 7th February 2022<\/b><\/h4>\n\n\n<b>\n<center><iframe width=%22560%22 height=%22315%22 src=%22https:\/\/www.youtube.com\/embed\/mLHy2g84OvE%22 title=%22YouTube video player%22 frameborder=%220%22 allow=%22accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture%22 allowfullscreen=%22%22><\/iframe>\n\n<\/b>\n\n<p><b><\/b><\/p>\n<h4 style=%22text-align: justify;%22><span style=%22font-weight: 400;%22>Today, someone asked me why the cost of living is going up. <\/span><\/h4>\n<h4 style=%22text-align: justify;%22><span style=%22font-weight: 400;%22><\/span><\/h4>\n<h4 style=%22text-align: justify;%22><span style=%22font-weight: 400;%22>The questions don\u2019t stop there. Why isn\u2019t your money going as far?<\/span><\/h4>\n<p style=%22text-align: justify;%22><span style=%22font-weight: 400;%22><\/span><\/p>\n<p style=%22text-align: justify;%22><span style=%22font-weight: 400;%22>With talk constantly moving around lockdowns and new variants, why should the price of a bottle of water rise by 15p in the last four months? <\/span><\/p>\n<p style=%22text-align: justify;%22><span style=%22font-weight: 400;%22>Prices of consumer goods are rising so quickly that the average wage can no longer keep up. <\/span><\/p>\n<p style=%22text-align: justify;%22><span style=%22font-weight: 400;%22>Jack Monroe, a campaigner and food writer, recently asked questions about why supermarket value ranges and prices are going up by more than the official inflation rate. <\/span><\/p>\n<p style=%22text-align: justify;%22><span style=%22font-weight: 400;%22>The poorest and most vulnerable in society are suffering from higher inflation. <\/span><\/p>\n<p style=%22text-align: justify;%22><span style=%22font-weight: 400;%22>The extra value box of mushrooms you used to buy is now more expensive \u2013 while the box is significantly smaller.<\/span><\/p>\n<p><span style=%22font-weight: 400;%22><\/span><\/p>\n<h2><span style=%22font-weight: 400;%22><b>The cost of living<\/b><\/span><\/h2>\n<p><span style=%22font-weight: 400;%22><b><\/b><\/span><\/p>\n<p><span style=%22font-weight: 400;%22><b><img src=%22https:\/\/finsbury-associates.com\/wp-content\/uploads\/2022\/02\/17-1.png%22 width=%221200%22 height=%22628%22 alt=%22Cost of living%22 class=%22wp-image-52430 alignnone size-full%22 \/><\/b><\/span><\/p>\n<p style=%22text-align: justify;%22><span style=%22font-weight: 400;%22>Recent ONS data suggests that inflation is being experienced at similarly high levels across all income brackets. The rising global price of energy and transport bills for businesses is being passed on to consumers. Supply problems and inflated shipping costs are further impacting businesses. <\/span><\/p>\n<p style=%22text-align: justify;%22><span style=%22font-weight: 400;%22>The consequence and impact of Brexit, coupled with the aftereffects of the pandemic, further exacerbated in the United Kingdom and consumers feeling the cost shift.<\/span><\/p>\n<p style=%22text-align: justify;%22><span style=%22font-weight: 400;%22><\/span><\/p>\n<h2><b>Rising Inflation Rates<\/b><\/h2>\n<p><b><\/b><\/p>\n<p><b><img src=%22https:\/\/finsbury-associates.com\/wp-content\/uploads\/2022\/02\/18-1.png%22 width=%221200%22 height=%22628%22 alt=%22Rising Inflation Rates%22 class=%22wp-image-52431 alignnone size-full%22 \/><\/b><\/p>\n<p style=%22text-align: justify;%22><span style=%22font-weight: 400;%22>These factors all contribute to inflation. The Bank of England (BOE) targets an inflation rate of 2% but in December 2021 raised the projected rate to almost three times that target to 5.4%. There has been further warning from the BOE that inflation could momentarily <\/span><span style=%22font-weight: 400;%22>surpass 7% later this year.<\/span><\/p>\n<p style=%22text-align: justify;%22><span style=%22font-weight: 400;%22>The cost of living in 2022 could be affected by numerous external pressures; average gas and electricity bills are set to rise from April and increasing interest rates will make mortgage payments higher for some. <\/span><\/p>\n<p style=%22text-align: justify;%22><span style=%22font-weight: 400;%22>Inflation rates are at a near 30-year high adding pressure for the BOE to raise interest rates, which has occurred twice in the past few months, hiking the rate to 0.5%. <\/span><\/p>\n<p style=%22text-align: justify;%22><span style=%22font-weight: 400;%22>This, acknowledged by Michal Stelmach Senior Economist at KPMG, commenting that \u201ca combination of higher inflation, a resilient labour market, and better-than-expected Omicron data warrants a continuation of the rate hiking cycle that began in December.\u201d <\/span><\/p>\n<p style=%22text-align: justify;%22><span style=%22font-weight: 400;%22>This has always been the traditional response to rising inflation. With mortgage rates tied to the Bank of England\u2019s interest rate; borrowing on house purchases will become more expensive. <\/span><\/p>\n<p style=%22text-align: justify;%22><span style=%22font-weight: 400;%22>As your monthly mortgage repayments go up, your purchasing power becomes more limited resulting in a slowdown in the rise of the price of consumer goods.<\/span><\/p>\n<p style=%22text-align: justify;%22><span style=%22font-weight: 400;%22><\/span><\/p>\n<h2><b>How is Covid affecting the markets?<\/b><\/h2>\n<p><img src=%22https:\/\/finsbury-associates.com\/wp-content\/uploads\/2022\/02\/19-1.png%22 width=%221200%22 height=%22628%22 alt=%22How is Covid affecting the markets?%22 class=%22wp-image-52432 alignnone size-full%22 \/><\/p>\n<p style=%22text-align: justify;%22><span style=%22font-weight: 400;%22>Globally, we are adjusting to the \u201cnew normal\u201d. After Omicron, Covid is no longer having the same daily impact on life with the government and the markets responding positively. <\/span><\/p>\n<p style=%22text-align: justify;%22><span style=%22font-weight: 400;%22>Central banks are also not looking to stunt market growth. Interest rate rises are signposting the need to get the economy to a better place. <\/span><\/p>\n<p style=%22text-align: justify;%22><span style=%22font-weight: 400;%22>There are positives to be taken from the Covid recession \u2013 the regular Sheila or Bruce appear to have had a lifestyle reset. Lifestyle changes have been made, and the need to go back to the regular \u201cquid pro quo\u201d is no longer imperative. With a change in attitude toward full-time office-based work being no longer the new normal.<\/span><\/p>\n<p style=%22text-align: justify;%22><span style=%22font-weight: 400;%22><\/span><\/p>\n<h2><b>Volatility and investing<\/b><\/h2>\n<p style=%22text-align: justify;%22><span style=%22font-weight: 400;%22>Political and financial market volatility is set to continue for a little while longer. The need to maintain a balanced portfolio is clear. <\/span><\/p>\n<p style=%22text-align: justify;%22><b><span style=%22font-weight: 400;%22>Volatility works well for long-term investors and those who wish to cash in on their new year\u2019s financial resolutions and begin regular savings. <\/span><span style=%22text-decoration: underline;%22><a href=%22https:\/\/finsbury-associates.com%22><span style=%22font-weight: 400;%22>Finsbury Associates<\/span><\/a><\/span><span style=%22font-weight: 400;%22> can explain dollar-cost averaging to you and guide you through your investment needs.<\/span><\/b><\/p>\n<p style=%22text-align: justify;%22><b><span style=%22font-weight: 400;%22><\/span><\/b><\/p>\n<p style=%22text-align: justify;%22><img src=%22https:\/\/finsbury-associates.com\/wp-content\/uploads\/2022\/02\/Investment-Market-Update-2022-Inflation-Interest-Rates.png%22 width=%221200%22 height=%22628%22 alt=%22Investment Market Update 2022: Inflation &#038; Interest Rates%22 class=%22wp-image-52440 alignnone size-full%22 \/><\/p>\n<p style=%22text-align: justify;%22><b><span style=%22font-weight: 400;%22><\/span><\/b><\/p>\n<h2><b>Looking forward<\/b><\/h2>\n<p style=%22text-align: justify;%22><span style=%22font-weight: 400;%22>As they say, what goes up must come down. It is reasonably expected that inflation will ease in the third and fourth quarters of 2022.<\/span><\/p>\n<p style=%22text-align: justify;%22><span style=%22font-weight: 400;%22>Inflation will wane, but for now, leaving cash under the mattress or deposited in the bank is not likely to give you the same returns potential as the market. <\/span><\/p>\n<p style=%22text-align: justify;%22><span style=%22font-weight: 400;%22>While you contemplate the old Victorian saying, \u201csafe as houses\u201d. <\/span><\/p>\n<p style=%22text-align: justify;%22><span style=%22font-weight: 400;%22>Taking advantage of current market conditions clearly offers the opportunity for your savings to keep pace with inflation, if not outperform expectations. <\/span><\/p>\n<p style=%22text-align: justify;%22><b><br \/><span style=%22font-weight: 400;%22>At <\/span><span style=%22text-decoration: underline;%22><a href=%22https:\/\/finsbury-associates.com%22><span style=%22font-weight: 400;%22>Finsbury Associates<\/span><\/a>,<\/span><span style=%22font-weight: 400;%22> we have the experience and a proven track record. We remain ready to help guide you in the most advantageous direction or position you should take with your <\/span><a href=%22https:\/\/finsbury-associates.com\/investment\/%22><span style=%22font-weight: 400;%22><span style=%22text-decoration: underline;%22>asset<\/span><\/span><\/a><span style=%22font-weight: 400;%22> or retirement planning.<\/span><\/b><\/p>\n<p><span style=%22font-weight: 400;%22><b><\/b><\/span><\/p>\n<p style=%22text-align: justify;%22><span style=%22font-weight: 400; font-size: 10px;%22>Disclaimer:<\/span><br \/><span style=%22font-weight: 400; font-size: 10px;%22>\u201cQuilter Cheviot Limited (DIFC Branch) (\u201cQuilter Cheviot DIFC\u201d) is regulated by the Dubai Financial Services, Authority (DFSA). This presentation is for general information purposes only, is subject to change and should not be relied upon. Unauthorised dissemination or copying is prohibited. Quilter Cheviot Limited: is a private limited company, registered in England and Wales with number 01923571, whose registered office is at Senator House, <\/span><span style=%22text-decoration: underline;%22><a href=%22https:\/\/www.google.com\/maps\/search\/85+Queen%0D%0A+Victoria+Street,+London,+EC4V+4AB?entry=gmail&#038;source=g%22><span style=%22font-weight: 400; font-size: 10px;%22>85 Queen Victoria Street, London, EC4V 4AB<\/span><\/a><\/span><span style=%22font-weight: 400; font-size: 10px;%22>; is a member of the London Stock Exchange; is authorised and regulated by the UK Financial Conduct Authority; has established a branch in Jersey, and is regulated the Jersey Financial Services Commission, and by the Guernsey Financial Services Commission in the Bailiwick of Guernsey; is authorised by the South African Financial Services Conduct Authority under FSP No. 20872, as a Registered Financial Services Provider; Quilter Cheviot Limited (DIFC Branch) is an established branch in the Dubai International Financial Centre (\u201cDIFC\u201d) with number 2084, which is regulated by the Dubai Financial Services Authority. Accordingly, in some respects the regulatory system that applies will be different from that of the United Kingdom.\u201d<\/span><\/p>&#8221; content_phone=&#8221;<h4><b>Watch our Expert Investment Market Update Webinar from the 7th February 2022<\/b><\/h4>\n\n\n<b>\n<center><iframe width=%22560%22 height=%22315%22 src=%22https:\/\/www.youtube.com\/embed\/mLHy2g84OvE%22 title=%22YouTube video player%22 frameborder=%220%22 allow=%22accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture%22 allowfullscreen=%22%22><\/iframe>\n\n<\/b>\n\n<p><b><\/b><\/p>\n<p><b><\/b><\/p>\n<h4 style=%22text-align: justify;%22><span style=%22font-weight: 400;%22>Today, someone asked me why the cost of living is going up. <\/span><\/h4>\n<h4 style=%22text-align: justify;%22><span style=%22font-weight: 400;%22><\/span><\/h4>\n<h4 style=%22text-align: justify;%22><span style=%22font-weight: 400;%22>The questions don\u2019t stop there. Why isn\u2019t your money going as far?<\/span><\/h4>\n<p style=%22text-align: justify;%22><span style=%22font-weight: 400;%22><\/span><\/p>\n<p style=%22text-align: justify;%22><span style=%22font-weight: 400;%22>With talk constantly moving around lockdowns and new variants, why should the price of a bottle of water rise by 15p in the last four months? <\/span><\/p>\n<p style=%22text-align: justify;%22><span style=%22font-weight: 400;%22>Prices of consumer goods are rising so quickly that the average wage can no longer keep up. <\/span><\/p>\n<p style=%22text-align: justify;%22><span style=%22font-weight: 400;%22>Jack Monroe, a campaigner and food writer, recently asked questions about why supermarket value ranges and prices are going up by more than the official inflation rate. <\/span><\/p>\n<p style=%22text-align: justify;%22><span style=%22font-weight: 400;%22>The poorest and most vulnerable in society are suffering from higher inflation. <\/span><\/p>\n<p style=%22text-align: justify;%22><span style=%22font-weight: 400;%22>The extra value box of mushrooms you used to buy is now more expensive \u2013 while the box is significantly smaller.<\/span><\/p>\n<p><span style=%22font-weight: 400;%22><\/span><\/p>\n<h2><span style=%22font-weight: 400;%22><b>The cost of living<\/b><\/span><\/h2>\n<p><span style=%22font-weight: 400;%22><b><\/b><\/span><\/p>\n<p><span style=%22font-weight: 400;%22><b><img src=%22https:\/\/finsbury-associates.com\/wp-content\/uploads\/2022\/02\/17-1.png%22 width=%221200%22 height=%22628%22 alt=%22Cost of living%22 class=%22wp-image-52430 alignnone size-full%22 \/><\/b><\/span><\/p>\n<p style=%22text-align: justify;%22><span style=%22font-weight: 400;%22>Recent ONS data suggests that inflation is being experienced at similarly high levels across all income brackets. The rising global price of energy and transport bills for businesses is being passed on to consumers. Supply problems and inflated shipping costs are further impacting businesses. <\/span><\/p>\n<p style=%22text-align: justify;%22><span style=%22font-weight: 400;%22>The consequence and impact of Brexit, coupled with the aftereffects of the pandemic, further exacerbated in the United Kingdom and consumers feeling the cost shift.<\/span><\/p>\n<p style=%22text-align: justify;%22><span style=%22font-weight: 400;%22><\/span><\/p>\n<h2><b>Rising Inflation Rates<\/b><\/h2>\n<p><b><\/b><\/p>\n<p><b><img src=%22https:\/\/finsbury-associates.com\/wp-content\/uploads\/2022\/02\/18-1.png%22 width=%221200%22 height=%22628%22 alt=%22Rising Inflation Rates%22 class=%22wp-image-52431 alignnone size-full%22 \/><\/b><\/p>\n<p style=%22text-align: justify;%22><span style=%22font-weight: 400;%22>These factors all contribute to inflation. The Bank of England (BOE) targets an inflation rate of 2% but in December 2021 raised the projected rate to almost three times that target to 5.4%. There has been further warning from the BOE that inflation could momentarily <\/span><span style=%22font-weight: 400;%22>surpass 7% later this year.<\/span><\/p>\n<p style=%22text-align: justify;%22><span style=%22font-weight: 400;%22>The cost of living in 2022 could be affected by numerous external pressures; average gas and electricity bills are set to rise from April and increasing interest rates will make mortgage payments higher for some. <\/span><\/p>\n<p style=%22text-align: justify;%22><span style=%22font-weight: 400;%22>Inflation rates are at a near 30-year high adding pressure for the BOE to raise interest rates, which has occurred twice in the past few months, hiking the rate to 0.5%. <\/span><\/p>\n<p style=%22text-align: justify;%22><span style=%22font-weight: 400;%22>This, acknowledged by Michal Stelmach Senior Economist at KPMG, commenting that \u201ca combination of higher inflation, a resilient labour market, and better-than-expected Omicron data warrants a continuation of the rate hiking cycle that began in December.\u201d <\/span><\/p>\n<p style=%22text-align: justify;%22><span style=%22font-weight: 400;%22>This has always been the traditional response to rising inflation. With mortgage rates tied to the Bank of England\u2019s interest rate; borrowing on house purchases will become more expensive. <\/span><\/p>\n<p style=%22text-align: justify;%22><span style=%22font-weight: 400;%22>As your monthly mortgage repayments go up, your purchasing power becomes more limited resulting in a slowdown in the rise of the price of consumer goods.<\/span><\/p>\n<p style=%22text-align: justify;%22><span style=%22font-weight: 400;%22><\/span><\/p>\n<h2><b>How is Covid affecting the markets?<\/b><\/h2>\n<p><img src=%22https:\/\/finsbury-associates.com\/wp-content\/uploads\/2022\/02\/19-1.png%22 width=%221200%22 height=%22628%22 alt=%22How is Covid affecting the markets?%22 class=%22wp-image-52432 alignnone size-full%22 \/><\/p>\n<p style=%22text-align: justify;%22><span style=%22font-weight: 400;%22>Globally, we are adjusting to the \u201cnew normal\u201d. After Omicron, Covid is no longer having the same daily impact on life with the government and the markets responding positively. <\/span><\/p>\n<p style=%22text-align: justify;%22><span style=%22font-weight: 400;%22>Central banks are also not looking to stunt market growth. Interest rate rises are signposting the need to get the economy to a better place. <\/span><\/p>\n<p style=%22text-align: justify;%22><span style=%22font-weight: 400;%22>There are positives to be taken from the Covid recession \u2013 the regular Sheila or Bruce appear to have had a lifestyle reset. Lifestyle changes have been made, and the need to go back to the regular \u201cquid pro quo\u201d is no longer imperative. With a change in attitude toward full-time office-based work being no longer the new normal.<\/span><\/p>\n<p style=%22text-align: justify;%22><span style=%22font-weight: 400;%22><\/span><\/p>\n<h2><b>Volatility and investing<\/b><\/h2>\n<p style=%22text-align: justify;%22><span style=%22font-weight: 400;%22>Political and financial market volatility is set to continue for a little while longer. The need to maintain a balanced portfolio is clear. <\/span><\/p>\n<p style=%22text-align: justify;%22><b><span style=%22font-weight: 400;%22>Volatility works well for long-term investors and those who wish to cash in on their new year\u2019s financial resolutions and begin regular savings. <\/span><span style=%22text-decoration: underline;%22><a href=%22https:\/\/finsbury-associates.com%22><span style=%22font-weight: 400;%22>Finsbury Associates<\/span><\/a><\/span><span style=%22font-weight: 400;%22> can explain dollar-cost averaging to you and guide you through your investment needs.<\/span><\/b><\/p>\n<p style=%22text-align: justify;%22><b><span style=%22font-weight: 400;%22><\/span><\/b><\/p>\n<p style=%22text-align: justify;%22><img src=%22https:\/\/finsbury-associates.com\/wp-content\/uploads\/2022\/02\/Investment-Market-Update-2022-Inflation-Interest-Rates.png%22 width=%221200%22 height=%22628%22 alt=%22Investment Market Update 2022: Inflation &#038; Interest Rates%22 class=%22wp-image-52440 alignnone size-full%22 \/><\/p>\n<p style=%22text-align: justify;%22><b><span style=%22font-weight: 400;%22><\/span><\/b><\/p>\n<h2><b>Looking forward<\/b><\/h2>\n<p style=%22text-align: justify;%22><span style=%22font-weight: 400;%22>As they say, what goes up must come down. It is reasonably expected that inflation will ease in the third and fourth quarters of 2022.<\/span><\/p>\n<p style=%22text-align: justify;%22><span style=%22font-weight: 400;%22>Inflation will wane, but for now, leaving cash under the mattress or deposited in the bank is not likely to give you the same returns potential as the market. <\/span><\/p>\n<p style=%22text-align: justify;%22><span style=%22font-weight: 400;%22>While you contemplate the old Victorian saying, \u201csafe as houses\u201d. <\/span><\/p>\n<p style=%22text-align: justify;%22><span style=%22font-weight: 400;%22>Taking advantage of current market conditions clearly offers the opportunity for your savings to keep pace with inflation, if not outperform expectations. <\/span><\/p>\n<p style=%22text-align: justify;%22><b><br \/><span style=%22font-weight: 400;%22>At <\/span><span style=%22text-decoration: underline;%22><a href=%22https:\/\/finsbury-associates.com%22><span style=%22font-weight: 400;%22>Finsbury Associates<\/span><\/a>,<\/span><span style=%22font-weight: 400;%22> we have the experience and a proven track record. We remain ready to help guide you in the most advantageous direction or position you should take with your <\/span><a href=%22https:\/\/finsbury-associates.com\/investment\/%22><span style=%22font-weight: 400;%22><span style=%22text-decoration: underline;%22>asset<\/span><\/span><\/a><span style=%22font-weight: 400;%22> or retirement planning.<\/span><\/b><\/p>\n<p><span style=%22font-weight: 400;%22><b><\/b><\/span><\/p>\n<p style=%22text-align: justify;%22><span style=%22font-weight: 400; font-size: 10px;%22>Disclaimer:<\/span><br \/><span style=%22font-weight: 400; font-size: 10px;%22>\u201cQuilter Cheviot Limited (DIFC Branch) (\u201cQuilter Cheviot DIFC\u201d) is regulated by the Dubai Financial Services, Authority (DFSA). This presentation is for general information purposes only, is subject to change and should not be relied upon. Unauthorised dissemination or copying is prohibited. Quilter Cheviot Limited: is a private limited company, registered in England and Wales with number 01923571, whose registered office is at Senator House, <\/span><span style=%22text-decoration: underline;%22><a href=%22https:\/\/www.google.com\/maps\/search\/85+Queen%0D%0A+Victoria+Street,+London,+EC4V+4AB?entry=gmail&#038;source=g%22><span style=%22font-weight: 400; font-size: 10px;%22>85 Queen Victoria Street, London, EC4V 4AB<\/span><\/a><\/span><span style=%22font-weight: 400; font-size: 10px;%22>; is a member of the London Stock Exchange; is authorised and regulated by the UK Financial Conduct Authority; has established a branch in Jersey, and is regulated the Jersey Financial Services Commission, and by the Guernsey Financial Services Commission in the Bailiwick of Guernsey; is authorised by the South African Financial Services Conduct Authority under FSP No. 20872, as a Registered Financial Services Provider; Quilter Cheviot Limited (DIFC Branch) is an established branch in the Dubai International Financial Centre (\u201cDIFC\u201d) with number 2084, which is regulated by the Dubai Financial Services Authority. Accordingly, in some respects the regulatory system that applies will be different from that of the United Kingdom.\u201d<\/span><\/p>&#8221; content_last_edited=&#8221;on|phone&#8221; _builder_version=&#8221;4.14.7&#8243; _module_preset=&#8221;default&#8221; hover_enabled=&#8221;0&#8243; global_colors_info=&#8221;{}&#8221; sticky_enabled=&#8221;0&#8243;]<h4><b>Watch our Expert Investment Market Update Webinar from the 7th February 2022<\/b><\/h4>\n\n<b>\n<center><iframe loading=\"lazy\" width=\"560\" height=\"315\" data-src=\"https:\/\/www.youtube.com\/embed\/mLHy2g84OvE\" title=\"YouTube video player\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen=\"\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" class=\"lazyload\" data-load-mode=\"1\"><\/iframe>\n\n<\/b>\n\n<b><\/b>\n\n<b><\/b>\n<h4 style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Today, someone asked me why the cost of living is going up.\u00a0<\/span><\/h4>\n<h4 style=\"text-align: justify;\"><span style=\"font-weight: 400;\"><\/span><\/h4>\n<h4 style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The questions don\u2019t stop there.\u00a0 Why isn\u2019t your money going as far?<\/span><\/h4>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\"><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">With talk constantly moving around lockdowns and new variants, why should the price of a bottle of water rise by 15p in the last four months?\u00a0\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Prices of consumer goods are rising so quickly that the average wage can no longer keep up.\u00a0\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Jack Monroe, a campaigner and food writer, recently asked questions about why supermarket value ranges and prices are going up by more than the official inflation rate.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The poorest and most vulnerable in society are suffering from higher inflation.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The extra value box of mushrooms you used to buy is now more expensive \u2013 while the box is significantly smaller.<\/span><\/p>\n<span style=\"font-weight: 400;\"><\/span>\n<h2><span style=\"font-weight: 400;\"><b>The cost of living<\/b><\/span><\/h2>\n<span style=\"font-weight: 400;\"><b><\/b><\/span>\n\n<span style=\"font-weight: 400;\"><b><img loading=\"lazy\" decoding=\"async\" data-src=\"https:\/\/finsbury-associates.com\/wp-content\/uploads\/2022\/02\/17-1.png\" width=\"1200\" height=\"628\" alt=\"Cost of living\" class=\"wp-image-52430 alignnone size-full lazyload\" data-srcset=\"https:\/\/finsbury-associates.com\/wp-content\/uploads\/2022\/02\/17-1.png 1200w, https:\/\/finsbury-associates.com\/wp-content\/uploads\/2022\/02\/17-1-980x513.png 980w, https:\/\/finsbury-associates.com\/wp-content\/uploads\/2022\/02\/17-1-480x251.png 480w\" data-sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1200px, 100vw\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 1200px; --smush-placeholder-aspect-ratio: 1200\/628;\" \/><noscript><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/finsbury-associates.com\/wp-content\/uploads\/2022\/02\/17-1.png\" width=\"1200\" height=\"628\" alt=\"Cost of living\" class=\"wp-image-52430 alignnone size-full\" srcset=\"https:\/\/finsbury-associates.com\/wp-content\/uploads\/2022\/02\/17-1.png 1200w, https:\/\/finsbury-associates.com\/wp-content\/uploads\/2022\/02\/17-1-980x513.png 980w, https:\/\/finsbury-associates.com\/wp-content\/uploads\/2022\/02\/17-1-480x251.png 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1200px, 100vw\" \/><\/noscript><\/b><\/span>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Recent ONS data suggests that inflation is being experienced at similarly high levels across all income brackets. The rising global price of energy and transport bills for businesses is being passed on to consumers. Supply problems and inflated shipping costs are further impacting businesses.\u00a0\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The consequence and impact of Brexit, coupled with the aftereffects of the pandemic, further exacerbated in the United Kingdom and consumers feeling the cost shift.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\"><\/span><\/p>\n\n<h2><b>Rising Inflation Rates<\/b><\/h2>\n<b><\/b>\n\n<b><img loading=\"lazy\" decoding=\"async\" data-src=\"https:\/\/finsbury-associates.com\/wp-content\/uploads\/2022\/02\/18-1.png\" width=\"1200\" height=\"628\" alt=\"Rising Inflation Rates\" class=\"wp-image-52431 alignnone size-full lazyload\" data-srcset=\"https:\/\/finsbury-associates.com\/wp-content\/uploads\/2022\/02\/18-1.png 1200w, https:\/\/finsbury-associates.com\/wp-content\/uploads\/2022\/02\/18-1-980x513.png 980w, https:\/\/finsbury-associates.com\/wp-content\/uploads\/2022\/02\/18-1-480x251.png 480w\" data-sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1200px, 100vw\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 1200px; --smush-placeholder-aspect-ratio: 1200\/628;\" \/><noscript><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/finsbury-associates.com\/wp-content\/uploads\/2022\/02\/18-1.png\" width=\"1200\" height=\"628\" alt=\"Rising Inflation Rates\" class=\"wp-image-52431 alignnone size-full\" srcset=\"https:\/\/finsbury-associates.com\/wp-content\/uploads\/2022\/02\/18-1.png 1200w, https:\/\/finsbury-associates.com\/wp-content\/uploads\/2022\/02\/18-1-980x513.png 980w, https:\/\/finsbury-associates.com\/wp-content\/uploads\/2022\/02\/18-1-480x251.png 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1200px, 100vw\" \/><\/noscript><\/b>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">These factors all contribute to inflation. The Bank of England (BOE) targets an inflation rate of 2% but in December 2021 raised the projected rate to almost three times that target to 5.4%. There has been further warning from the BOE that inflation could momentarily <\/span><span style=\"font-weight: 400;\">surpass 7% later this year.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The cost of living in 2022 could be affected by numerous external pressures; average gas and electricity bills are set to rise from April and increasing interest rates will make mortgage payments higher for some.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Inflation rates are at a near 30-year high adding pressure for the BOE to raise interest rates, which has occurred twice in the past few months, hiking the rate to 0.5%.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">This, acknowledged by Michal Stelmach Senior Economist at KPMG, commenting that \u201ca combination of higher inflation, a resilient labour market, and better-than-expected Omicron data warrants a continuation of the rate hiking cycle that began in December.\u201d\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">This has always been the traditional response to rising inflation. With mortgage rates tied to the Bank of England\u2019s interest rate; borrowing on house purchases will become more expensive.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">As your monthly mortgage repayments go up, your purchasing power becomes more limited resulting in a slowdown in the rise of the price of consumer goods.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\"><\/span><\/p>\n\n<h2><b>How is Covid affecting the markets?<\/b><\/h2>\n<img loading=\"lazy\" decoding=\"async\" data-src=\"https:\/\/finsbury-associates.com\/wp-content\/uploads\/2022\/02\/19-1.png\" width=\"1200\" height=\"628\" alt=\"How is Covid affecting the markets?\" class=\"wp-image-52432 alignnone size-full lazyload\" data-srcset=\"https:\/\/finsbury-associates.com\/wp-content\/uploads\/2022\/02\/19-1.png 1200w, https:\/\/finsbury-associates.com\/wp-content\/uploads\/2022\/02\/19-1-980x513.png 980w, https:\/\/finsbury-associates.com\/wp-content\/uploads\/2022\/02\/19-1-480x251.png 480w\" data-sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1200px, 100vw\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 1200px; --smush-placeholder-aspect-ratio: 1200\/628;\" \/><noscript><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/finsbury-associates.com\/wp-content\/uploads\/2022\/02\/19-1.png\" width=\"1200\" height=\"628\" alt=\"How is Covid affecting the markets?\" class=\"wp-image-52432 alignnone size-full\" srcset=\"https:\/\/finsbury-associates.com\/wp-content\/uploads\/2022\/02\/19-1.png 1200w, https:\/\/finsbury-associates.com\/wp-content\/uploads\/2022\/02\/19-1-980x513.png 980w, https:\/\/finsbury-associates.com\/wp-content\/uploads\/2022\/02\/19-1-480x251.png 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1200px, 100vw\" \/><\/noscript>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Globally, we are adjusting to the \u201cnew normal\u201d. After Omicron, Covid is no longer having the same daily impact on life with the government and the markets responding positively.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Central banks are also not looking to stunt market growth. Interest rate rises are signposting the need to get the economy to a better place.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">There are positives to be taken from the Covid recession \u2013 the regular Sheila or Bruce appear to have had a lifestyle reset. Lifestyle changes have been made, and the need to go back to the regular \u201cquid pro quo\u201d is no longer imperative. With a change in attitude toward full-time office-based work being no longer the new normal.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\"><\/span><\/p>\n\n<h2><b>Volatility and investing<\/b><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Political and financial market volatility is set to continue for a little while longer. The need to maintain a balanced portfolio is clear.\u00a0\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><b><span style=\"font-weight: 400;\">Volatility works well for long-term investors and those who wish to cash in on their new year\u2019s financial resolutions and begin regular savings. <\/span><span style=\"text-decoration: underline;\"><a href=\"https:\/\/finsbury-associates.com\"><span style=\"font-weight: 400;\">Finsbury Associates<\/span><\/a><\/span><span style=\"font-weight: 400;\"> can explain dollar-cost averaging to you and guide you through your investment needs.<\/span><\/b><\/p>\n<p style=\"text-align: justify;\"><b><span style=\"font-weight: 400;\"><\/span><\/b><\/p>\n<p style=\"text-align: justify;\"><img loading=\"lazy\" decoding=\"async\" data-src=\"https:\/\/finsbury-associates.com\/wp-content\/uploads\/2022\/02\/Investment-Market-Update-2022-Inflation-Interest-Rates.png\" width=\"1200\" height=\"628\" alt=\"Investment Market Update 2022: Inflation &amp; Interest Rates\" class=\"wp-image-52440 alignnone size-full lazyload\" data-srcset=\"https:\/\/finsbury-associates.com\/wp-content\/uploads\/2022\/02\/Investment-Market-Update-2022-Inflation-Interest-Rates.png 1200w, https:\/\/finsbury-associates.com\/wp-content\/uploads\/2022\/02\/Investment-Market-Update-2022-Inflation-Interest-Rates-980x513.png 980w, https:\/\/finsbury-associates.com\/wp-content\/uploads\/2022\/02\/Investment-Market-Update-2022-Inflation-Interest-Rates-480x251.png 480w\" data-sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1200px, 100vw\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 1200px; --smush-placeholder-aspect-ratio: 1200\/628;\" \/><noscript><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/finsbury-associates.com\/wp-content\/uploads\/2022\/02\/Investment-Market-Update-2022-Inflation-Interest-Rates.png\" width=\"1200\" height=\"628\" alt=\"Investment Market Update 2022: Inflation &amp; Interest Rates\" class=\"wp-image-52440 alignnone size-full\" srcset=\"https:\/\/finsbury-associates.com\/wp-content\/uploads\/2022\/02\/Investment-Market-Update-2022-Inflation-Interest-Rates.png 1200w, https:\/\/finsbury-associates.com\/wp-content\/uploads\/2022\/02\/Investment-Market-Update-2022-Inflation-Interest-Rates-980x513.png 980w, https:\/\/finsbury-associates.com\/wp-content\/uploads\/2022\/02\/Investment-Market-Update-2022-Inflation-Interest-Rates-480x251.png 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1200px, 100vw\" \/><\/noscript><\/p>\n<p style=\"text-align: justify;\"><b><span style=\"font-weight: 400;\"><\/span><\/b><\/p>\n\n<h2><b>Looking forward<\/b><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">As they say, what goes up must come down.\u00a0 It is reasonably expected that inflation will ease in the third and fourth quarters of 2022.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Inflation will wane, but for now, leaving cash under the mattress or deposited in the bank is not likely to give you the same returns potential as the market.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">While you contemplate the old Victorian saying, \u201csafe as houses\u201d.\u00a0\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Taking advantage of current market conditions clearly offers the opportunity for your savings to keep pace with inflation, if not outperform expectations.\u00a0\u00a0\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><b>\n<span style=\"font-weight: 400;\">At <\/span><span style=\"text-decoration: underline;\"><a href=\"https:\/\/finsbury-associates.com\"><span style=\"font-weight: 400;\">Finsbury Associates<\/span><\/a>,<\/span><span style=\"font-weight: 400;\"> we have the experience and a proven track record.\u00a0 We remain ready to help guide you in the most advantageous direction or position you should take with your <\/span><a href=\"https:\/\/finsbury-associates.com\/investment\/\"><span style=\"font-weight: 400;\"><span style=\"text-decoration: underline;\">asset<\/span><\/span><\/a><span style=\"font-weight: 400;\"> or retirement planning.<\/span><\/b><\/p>\n<span style=\"font-weight: 400;\"><b><\/b><\/span>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400; font-size: 10px;\">Disclaimer:<\/span>\n<span style=\"font-weight: 400; font-size: 10px;\">\u201cQuilter Cheviot Limited (DIFC Branch) (\u201cQuilter Cheviot DIFC\u201d) is regulated by the Dubai Financial Services, Authority (DFSA). This presentation is for general information purposes only, is subject to change and should not be relied upon. Unauthorised dissemination or copying is prohibited. Quilter Cheviot Limited: is a private limited company, registered in England and Wales with number 01923571, whose registered office is at Senator House, <\/span><span style=\"text-decoration: underline;\"><a href=\"https:\/\/www.google.com\/maps\/search\/85+Queen%0D%0A+Victoria+Street,+London,+EC4V+4AB?entry=gmail&amp;source=g\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400; font-size: 10px;\">85 Queen Victoria Street, London, EC4V 4AB<\/span><\/a><\/span><span style=\"font-weight: 400; font-size: 10px;\">; is a member of the London Stock Exchange; is authorised and regulated by the UK Financial Conduct Authority; has established a branch in Jersey, and is regulated the Jersey Financial Services Commission, and by the Guernsey Financial Services Commission in the Bailiwick of Guernsey; is authorised by the South African Financial Services Conduct Authority under FSP No. 20872, as a Registered Financial Services Provider; Quilter Cheviot Limited (DIFC Branch) is an established branch in the Dubai International Financial Centre (\u201cDIFC\u201d) with number 2084, which is regulated by the Dubai Financial Services Authority. Accordingly, in some respects the regulatory system that applies will be different from that of the United Kingdom.\u201d<\/span><\/p>\n&nbsp;[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]\n","protected":false},"excerpt":{"rendered":"<p>Watch our Expert Investment Market Update Webinar from the 7th February 2022 Today, someone asked me why the cost of living is going up.\u00a0 The questions don\u2019t stop there.\u00a0 Why isn\u2019t your money going as far? With talk constantly moving around lockdowns and new variants, why should the price of a bottle of water rise [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":52440,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","cybocfi_hide_featured_image":"yes","footnotes":""},"categories":[61,63],"tags":[],"_links":{"self":[{"href":"https:\/\/finsbury-associates.com\/wp-json\/wp\/v2\/posts\/52425"}],"collection":[{"href":"https:\/\/finsbury-associates.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finsbury-associates.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finsbury-associates.com\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/finsbury-associates.com\/wp-json\/wp\/v2\/comments?post=52425"}],"version-history":[{"count":22,"href":"https:\/\/finsbury-associates.com\/wp-json\/wp\/v2\/posts\/52425\/revisions"}],"predecessor-version":[{"id":52463,"href":"https:\/\/finsbury-associates.com\/wp-json\/wp\/v2\/posts\/52425\/revisions\/52463"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finsbury-associates.com\/wp-json\/wp\/v2\/media\/52440"}],"wp:attachment":[{"href":"https:\/\/finsbury-associates.com\/wp-json\/wp\/v2\/media?parent=52425"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finsbury-associates.com\/wp-json\/wp\/v2\/categories?post=52425"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finsbury-associates.com\/wp-json\/wp\/v2\/tags?post=52425"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}