August is a live meeting in terms of potential rate changes – and next week’s CPI figures will be key to the decision, says Pendal's head of bond strategies Tim Hext in this fast podcast.

A higher-than-expected CPI number could prompt a hike. A lower-than-expected number would likely mean rates stay where they are.

However, if an August rate hike eventuates, investors should largely ignore it, Tim  argues.

“I think they will be cutting rates early next year. Whether they hike in early August or not, I think the environment will be far more friendly for inflation. “

In this podcast Tim explains why – and what it means for bonds.

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Find out more about Pendal's fixed income strategies at pend.al/fixedinterest

Pendal is an Australian based asset manager. Find out more at pendalgroup.com

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