Research Affiliates: Real interest rates will remain higher even after inflation is tamed

Tougher conditions for capital markets

Valeria Martinez
clock • 4 min read

Even after the inflation problem is solved, interest rates might stay high for longer than markets expect.

Chris Brightman, CIO and CEO at Research Affiliates, told Investment Week: "You might think, if the inflation problem is solved, that will mean interest rates are back to where they used to be? I think maybe not."  From roughly around the time of the Global Financial Crisis in 2008 until this year, real interest rates have been zero or negative across most of the developed world, and people have become used to that, he said.  "That is not normal, but they have been around for so long that people start rationalising that maybe they are," he added. "The inflation problem is the probl...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Economics

Trustpilot