US interest rates will decide.

By Shaista Ahmed

The interest rate and inflation cycles are key to the performance of the fixed income sector. Despite the rise in US interest rates on 30 June, and a wide anticipation that more will follow both in the US and UK, fixed income managers could take some comfort from rising retail fund sales in the sector.

The US economy is crucial to the health of the global economy -- performance of UK funds cannot be seen in isolation. The rate rise in June was significant because it was the first in almost four years, and it signalled the start of Fed's mone