Inflationary pressures spur pension funds to seek hedges

Inflated concerns

Inflation rate

On October 6, the Bank of England agreed to inject £75 billion into the UK economy in order to stimulate growth. This is in addition to the £200 billion it has pumped in since 2009. While the first round of quantitative easing did help to boost growth, it also contributed to a higher inflation rate. Inflation in the UK now stands at 5.2%, more than double the target of 2%. The fear is that having more money sloshing around the economy could push the rate even higher. For UK pension schemes, whic