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French Bank Predicts No Rate Cuts - Expert Opinions on Global Financial Markets.
According to a report from www.boerse.de, the financial experts at Societe Generale do not expect any rapid interest rate cuts from the major central banks due to the robust global economy. Everything is growing in the USA at the moment, even investments in historically interest-sensitive residential real estate. The US Federal Reserve is expected to cut the key interest rate by 0.25 percentage points in May, assuming there is no strong exogenous shock. In Germany, the chief economist sees no danger of stagflation because the German economy is not even in a technical recession. In addition, the head of global asset allocation expects a shift away from the overheating of US markets and a downward trend in inflation, which will lead to interest rate cuts...
French Bank Predicts No Rate Cuts - Expert Opinions on Global Financial Markets.
According to a report by www.boerse.de, the financial experts at Societe Generale do not expect any rapid interest rate cuts from the major central banks due to the robust global economy. Everything is growing in the USA at the moment, even investments in historically interest-sensitive residential real estate. The US Federal Reserve is expected to cut the key interest rate by 0.25 percentage points in May, assuming there is no strong exogenous shock. In Germany, the chief economist sees no danger of stagflation because the German economy is not even in a technical recession. In addition, the head of global asset allocation expects a shift away from the overheating of US markets and a downward trend in inflation, which could lead to interest rate cuts.
Societe Generale's forecasts reflect the general mood that the global economy continues to grow and there is no immediate risk of recession. This could have a positive impact on the stock market as lower interest rates may support stock prices. In addition, declining inflation could lead to the US Federal Reserve and the European Central Bank becoming more open to future interest rate cuts, which in turn could have a positive impact on credit markets.
The assessment of the situation in Germany could lead to investors maintaining their trust in the German market and continuing to invest in German companies. Additionally, investing in government bonds is viewed as a diversification option, although they are not considered an unqualified safe haven. This could lead to a shift in capital flows towards bonds.
Overall, Societe Generale's forecasts point to relative stability and growth in the global economy, which could potentially have a positive impact on the stock market and credit markets. At the same time, there could be a revaluation of asset classes as investors may increasingly invest in government bonds.
Read the source article at www.boerse.de