If you believe the UK economy is set for Japanese-style long-term deflation, locking away savings in fixed-rate bonds is the way to go. Nationwide offers a fixed 4.15% return on its five-year bonds, a good rate in the current climate but which might prove a fabulous one. If inflation falls to -3% and stays there for several years, the decision to save at such a rate would fall into a “greatest financial decisions” category.
Tác giả:
Xuất bản: The Guardian. London (UK)
Số phát hành: 28/3/2009
Mô tả vật lý: 3tr.
Dạng tài liệu: Báo
Nguồn gốc: Proquest
Ngôn ngữ: Eng
Tài liệu: Xem toàn văn
Tóm tắt nội dung: If you believe the UK economy is set for Japanese-style long-term deflation, locking away savings in fixed-rate bonds is the way to go. Nationwide offers a fixed 4.15% return on its five-year bonds, a good rate in the current climate but which might prove a fabulous one. If inflation falls to -3% and stays there for several years, the decision to save at such a rate would fall into a “greatest financial decisions” category. However, if you believe we are due a shorter period of deflation, and a big jump in interest rates when inflation returns, a different strategy is required.
