Inflation continues to eat away at shoppers’ spending power, both in the UK and abroad. Meanwhile, how do currency fluctuations affect investment returns?

New Chancellor Jeremy Hunt has reversed virtually everything announced in the Truss-Kwarteng mini-budget in a bid to stabilise markets after weeks of turmoil.

The team ponder whether, after the not-so-mini reaction to the Chancellor’s ‘mini-budget’, it’s finally time to buy UK bonds again or whether US Treasuries still look a better place for capital, and explain how they are tackling currency exposure in the face of a continually volatile pound. Also, what does the return to a world of higher costs of capital and risk-free rates mean for markets, and how should it change how we invest? 

The Bank of England has kept the gilt market greased and the Chancellor has brought forward the date he will reveal his detailed fiscal plans, easing pressure on the UK. Meanwhile, inflation still reigns supreme in investors’ minds.