"I wonder if the markets have considered the longer-term outlook for inflation in a political sense?"

But more mainstream investors with longer-term outlooks are also getting involved.

Still, dealers continued to express negative views on the dollar's longer-term outlook.

Ms. Seneca is not the only portfolio manager with a positive longer-term outlook.

Nevertheless, most analysts remain pessimistic about the longer-term outlook for interest rates.

"To find a stock with a longer-term outlook is another."

But many are still optimistic about the longer-term outlook, provided interest rates go no higher than current levels and corporate earnings improve.

But the current Government's economic policy is taking hold, which is improving the longer-term outlook for the market.

As such, the report has little bearing on the longer-term outlook for inflation.

"Nothing that's happened over the past four weeks has changed the longer-term outlook for the economy which will drive the market," he said.