PGIM Fixed Income has argued that developed market fundamentals have warranted a “low-for-long” interest-rate environment. This recognition has driven our accurate long-term U.S. interest rate forecast in several instances over multiple market cycles.
The Bank of England hiked its base rate by an outsized 50 basis points and signaled that it might soon start selling its gilt holdings, thereby putting it in good stead to control inflation.
The Fed’s nuanced tone indicates a tricky landing. While rates may plateau as the Fed catches up, if we are at a multi-decade high for growth and inflation, the same may also apply to rates.
The European Central Bank surprised investors with an outsized rate hike at its July meeting, but underwhelmed with its vague announcement of a new tool, the transmission protection instrument.
The Fed assumed an even more aggressive stance at its June 15 meeting in light of persistently high and broad-based inflation readings.
The European Central Bank surprised investors with a hawkish message during its June policy meeting and set a clear map for the coming months: end net asset purchases and negative interest rates.
