Investment Insights
July 14 2023

Global Interest Rates from “lower for longer” to “higher for longer” and (eventually) back again?

10 min read

Investors today face a significant amount of uncertainty over whether now is a good time to buy bonds given the risk of further central bank rate hikes. Some data shows that actual economic performance remains strong, while other data indicates that economic activity should contract at some point in the future. This divergence in data creates a very challenging forecasting environment. Long government bond yields are highly influenced by how low central banks will cut rates once they begin monetary policy easing.