20 Jul 2011

AMP Capital Investors expects rates rise soon

8:46 pm on 20 July 2011

AMP Capital Investors expects the Reserve Bank to raise interest rates slowly from September as the economy strengthens further.

The fund manager's flagship balanced fund returned 0.3% in the three months to June, and 13% in the year.

While the United States debt issue and European debt crisis continue to weigh on investor sentiment, the fund manager says things are looking better in New Zealand.

AMP's head of fixed income, Grant Hassell, says New Zealand's economy is picking up faster than expected, and rising inflation will soon start to concern the Reserve Bank.