Page 23 - DIY Investor Magazine | Issue 31

When the public sees gas bills go up 50% or 100%, they may not be as supportive of some of the policies that we need; I think everybody needs to be that bit more practical about the situation and the challenge that we face. JL: Do you think interest rates – American, European, or British – are heading north as a result of the pressures that we’ve already spoken about? MT: I’m not sure they’ll go north because of these pressures as the central bank’s mandate focuses on ‘basic inflation’, excluding all of these things. They don’t really respond to supply-side driven shocks; it’s more demand-side. Most of this stuff is supply-side driven, and that’s the narrative that they’re talking about now – it all being transitory, and only the passage of time will tell if that’s the case. In my view quite a bit of it is transitory, but not all; I think some of it is probably here to stay, and therefore we probably do have slightly higher levels of inflation than we’ve had in the past. Whether that leads to materially higher interest rates is another question though because every time central banks have tried to raise interest rates ever since the financial crisis, it’s not really worked; and that may well happen again, in which case we may not get very far down the road of raising interest rates before they have to be cut again. You can listen to the full podcast at www.brunner.co.uk/podcast/ or search ‘Connected Investor’ on your usual podcast platform. Find out more about Brunner Investment Trust PLC here > To buy this trust login to your EQi account Select the Brunner Investment Trust - GB0001490001 All sources Allianz Global Investors GmbH unless otherwise noted. This is no recommendation or solicitation to buy or sell any particular security. A security mentioned as example above will not necessarily be comprised in the portfolio by the time this document is disclosed or at any other subsequent date. Investing involves risk. The value of an investment and the income from it may fall as well as rise and investors may not get back the full amount invested. Past performance is not a reliable indicator of future results. The views and opinions expressed herein, which are subject to change without notice, are those of the issuer and/ or its affiliated companies at the time of publication. This is a marketing communication issued by Allianz Global Investors GmbH, an investment company with limited liability, incorporated in Germany, with its registered office at Bockenheimer Landstrasse 42-44, D 60323 Frankfurt/M, registered with the local court Frankfurt/M under HRB 9340, authorised by Bundesanstalt für Finanzdienstleistungsaufsicht (www.bafin.de). Further information on Investor Rights are available here (www.regulatory.allianzgi.com). Allianz Global Investors GmbH has established a branch in the United Kingdom, Allianz Global Investors GmbH, UK branch, 199 Bishopsgate, London, EC2M 3TY, www. allianzglobalinvestors.co.uk, deemed authorised and regulated by the Financial Conduct Authority. Details of the Temporary Permissions Regime, which allows EEA-based firms to operate in the UK for a limited period while seeking full authorisation, are available on the Financial Conduct Authority’s website (www.fca.org.uk). Details about the extent of our regulation by the Financial Conduct Authority are available from us on request. The Brunner Investment Trust PLC is incorporated in England and Wales. (Company registration no. 226323). Registered Office: 199 Bishopsgate, London, EC2M 3TY. 23 Diy Investor Magazine · Nov 2021