Occupational pension fund managers will be crying into their beer tonight. Mark Carney, the Bank of England governor, has in effect ruled out an increase in base interest rates for another three years. And without a rate rise, pension fund deficits are only going to get larger.
There will be the benefit of a stock market rally that, at least in the next couple of years, will push up the value of pension fund assets. But pension funds have tended to be shy of buying a slice of corporate Britain in favour of lending it money.
