An investment to benefit from the credit crunch

As the supply of credit continues to expand and inflationary fears grow, further UK interest rate hikes are a near-certainty. And, in that case, one investment will definitely be worth having.

The credit expansion, although stuttering in some areas such at the US sub-prime market, continues and thus inflationary fears, not surprisingly, also continue. The US Fed, in their latest minutes, say that all of the members of the committee agreed the predominant policy concern remains the risk that inflation will fail to moderate as expected and that further policy firming might prove necessary to foster lower inflation.

The International Monetary Fund has backed expectations that the Bank of England will raise interest rates again, warning that higher borrowing costs may be needed to bring the sizzling housing market back under control.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
MoneyWeek

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.