Colonial First State Global Asset Management’s yield report explores the potential implications of interest rate increases for seven asset classes across its portfolio of investment capabilities.
The background surrounding the historically low interest rates is well known. It was more than six years ago, in an attempt to stimulate the US economy, the Federal Reserve (the Fed) reduced its benchmark interest rate down close to zero, but that policy is now expected to change. A potential rise in US interest rates has been one of the most discussed topics in recent months. With the US unemployment rate expected to drop towards 5% or lower in coming months, inflation expected to trend higher in the year ahead and the economy expected to grow by 2.5%-3.0%, the question is becoming not “will the Fed increase interest rates?”, rather a question of “when will the Fed increase rates and by how much?”
– Harry Moore, Head of Business Development, Australia and New Zealand
The full White Paper, The Yield Report 2015, is available here.