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

Tougher conditions for capital markets

clock • 4 min read
Chris Brightman is the CIO and CEO of Research Affiliates
Image:

Chris Brightman is the CIO and CEO of Research Affiliates

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

  • 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

Markus Hansen has been a portfolio manager for Vontobel's Quality Growth Boutique since June 2020.

Vontobel's Hansen drops Adidas for Hermès as a European recession looms

Shopping after growth derating

clock 10 August 2022 • 2 min read
European-focused investment grade and high yield credit have highest inflows since April 2020.

Fixed income dominates ETF flows in July

Accounted for $32.5bn

clock 08 August 2022 • 2 min read
Investors look away from energy intensive sectors such as chemicals, metals and manufacturing.

'An investor's worst nightmare': Energy rationing spells greater chaos for supply chains

Business confidence falls

clock 05 August 2022 • 5 min read
Trustpilot