SECTOR PROFILE
“ The system we operate in is over levered , there is abundant risktaking without full acknowledgement of the pitfalls involved ”
Andrew Lake Head of fixed income at Mirabaud
of the greater problem in the UK . He says : “ The system we operate in is over levered , there is abundant risktaking without full acknowledgement of the pitfalls involved , and the market has continued to appreciate thanks to central bank support . “ This is all changing now , and the market is struggling to adjust .” Robert Dishner , senior portfolio manager at Neuberger Berman , believes volatility is likely to remain high in gilts given the uncertain relationship between the Bank of England and the government . He adds that while it has been easy to cast certain central banks as hawkish ( such as in the US and New Zealand ) and others as dovish ( Japan ), the Bank of England appears to be somewhere in the middle , unwilling to commit to a path “ that will either sustainably reduce inflation at the expense of growth or tolerate some higher inflation to support growth ”. “ This policy creates uncertainty
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