The near demise of interest rates is a ‘moral issue’
enders should be entitled to a fair return on money which they allow others to use, and the Government and central banks are preventing it,” the manager of one of Britain’s most widely held investment trusts has said, adding to the growing clamour for the Bank of England to change tack and for interest rates to be allowed to rise.
Outspoken Robin Angus, executive director of the £700m Personal Assets Trust, used the company’s latest quarterly bulletin to shareholders to lambast central bank policies such as “quantitative easing” – the creation of money with which to buy bonds – and the reduction of interest rates.
“I would say the near demise of interest rates is a moral issue,” he said. He said the symbol of central banks’ actions following the financial crisis “should be a bicycle pump, and the theme song should be I’m forever blowing bubbles.
“One of these has been a bubble in house prices caused by rates so low they are more a financial inducement than a fair price for money.
“Central banks are now glutted with bonds, while elsewhere there is a bond famine. Pension funds are bidding for bonds at any price.”
PAT shares trade at almost £400 and Mr Angus’s own holdings are worth £1.7m. The fund is highly cautiously positioned, with gold and cash accounting for 30pc.