Europe: Portfolio Strategy - Strategy Expresso!: Impact of rising rates on sectors and the market
July 29, 2009
We don't expect a rise in monetary policy rates in the near term
We do not expect the ECB to hike rates before the second half of 2010. Historically, European markets have reacted more to US rate changes than European ones. But a combination of falling inflation and large output gaps makes it unlikely that Central Banks will tighten policy in the near future. Although we don’t expect rates to move higher in the near term, for those who have a different view we have looked at how the equity market responded in the past when rates started to rise at the end of a bear market.
>> Europe: Portfolio Strategy - Strategy Expresso!: Impact of rising rates on sectors and the market July 29, 2009 [PDF, 133 KB]