Investment Clock insights

Some good news but earnings squeeze goes on

Ian Kernohan, Economist

14 June 2017

With inflation now close to 3%, real earnings growth has slipped into negative territory. The Monetary Policy Committee (MPC) will need to see a distinct improvement in earnings growth if their latest forecasts are to prove accurate, so the good news is that the cost of borrowing will remain low for an extended period.

The value of investments and the income from them is not guaranteed and may go down as well as up and investors may not get back the amount originally invested. The views expressed are the author’s own and do not constitute investment advice.