Why rising interest rates are good news for some
Everything we're hearing from central banks around the world continues to emphasise their focus on getting on top of inflation. Here in Australia, the Reserve Bank has raised the cash rate to 2.35%, which is getting close to what we would consider the neutral cash rate.
But bond markets are pricing significant additional tightening from here, taking the cash rate to close to 4%. So what does that mean for the Australian economy?
In the below video, I sit down with Hugh Holden to provide our take on what lies ahead for markets and outline why it’s time to consider reallocating to bonds.
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Robert co-oversees the portfolio management teams in Asia. Previously, he was a portfolio manager in Munich and head of the European investment grade corporate bond team. He has 29 years of investment experience.