Effects of Rate Hikes on Companies, Households, Governments, and Investors
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Effects of Rate Hikes on Companies, Households, Governments, and Investors
Natalia López Colubi
Modified 1 Year ago.
Report
Effects of Rate Hikes on Companies, Households, Governments, and Investors
20 mins.
31 MARCH, 2022
ANALYSTS:
Leopoldo
Torralba
Ignacio
de la Torre
CATEGORIES:
Macro GlobalAER GlobalAER Personal
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Volatility and profound swings in economic variables have been a common feature amidst the current continuing global geopolitical and macroeconomic uncertainty. The Ukrainian conflict is compounding pre-existing supply chain constraints and driving the short-term rise in inflation. To curb these inflationary risks, markets are already pricing in interest rate hikes. As such, central banks’ official rates for a year from now have been revised upwards by +1.4% in the US, and +0.7% in the eurozone. This is a very different outlook than a month ago. As for ten-year sovereign bonds, their yields have gone up +0.4-0.6% over the previous month in Spain, Germany and the US.
How are markets reacting to soaring inflation?
What may be the performance of interest rates going forward?
And what about sovereign bonds yields?
What is the potential impact on companies, households, governments and investors?
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