Inflation will rein in debt

HIGHER inflation will be used by politicians in order to rein in the UK's debt, according to leading investment manager Evan Salway.

The Best of Breed Capital portfolio manager was speaking at the latest lunchtime lecture put on by the Guernsey branch of the Chartered Institute of Securities and Investment.

Mr Salway and colleague Chris Carlson were discussing how political drivers had to be considered more than ever when managing portfolios and how the current economic landscape was resulting in politicians and the wider 'body politic' having a greater influence on financial markets.

Mr Salway ruled out spending cuts being the answer to the nation's debt problem as it was just not possible to cut essential services enough to save the necessary cash, and while the government would much rather bank on growth to get out of the current situation, that was not going to happen either.

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