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Ultimately the interest rate backdrop (steep yield curve equals high profit potential) and continued government support (whether veiled or explicit) will help fuel the recovery process.
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"A likely end to interest rate increases against a backdrop of a strong economy has given investors the confidence to charge into stocks," says Collins, a veteran growth investor who, thanks to positions in stocks like Google, SanDisk and Nutrisystem, has a 37% gain in his OTC Insight model portfolio over the past 12 months.
Gulliver said the low oil price, low interest rate environment and the uncertain economic backdrop as creating a challenging backdrop for the bank.
Despite the improved outlook, the Bank of England has made it clear it is no rush to increase interest rates, against a backdrop of below-target inflation and weak wage growth and productivity.
Aside from the yuan weakening against the pound, there have been other effects on sterling as investors reassess the outlook for UK interest rates against the backdrop of turbulent global stock markets.
"We expect this low interest rate environment to persist for another one to two years, given a backdrop of subpar economic growth and financial sector deleveraging".
"Against a backdrop of rising real incomes and tighter mortgage regulation with good availability and affordability, we believe that consumers have resilience to future interest rate movements".
No interest rate rises?
Despite a backdrop of weakening growth in the euro zone, Italy on Tuesday was able to sell a slice of debt at a lower interest rate than at its previous auction.
Interest rate volatility 23.
Interest rate caps.
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