Vanguard Economic Update

[GeoffF100]

Here is the May 2021 economic update:

https://www.vanguardinvestor.co.uk/arti ... mic-update

Vanguard expects BOE base rate of 2.5% at the end of the decade. Economic predictions that far ahead are unreliable. Nonetheless, that is a number to consider. On the assumption that 5 year term account protected by the FSCS will pay about 1.5% more than the base rate, that gives an interest rate of about 4%. I will get plenty of warning as my bond ladder chugs through, but that is food for thought.

[GeoffF100]

More on vanguard's view on interest rates and bond yields:

https://www.vanguardinvestor.co.uk/arti ... -in-yields

Elsewhere, they have expressed the view that the recent increases in bond yields and expectations of further increases are already priced in, and that an increase in expectations or a reduction in expectations are equally likely. Um...