24 January, 2024

Central Banks, Fixed Income, and the Year Ahead

In our Insights in 5 2023 year-end update, IPC Private Wealth Portfolio Manager Simon Bowers looks back on the year and discusses what to look out for in the days ahead.

Simon notes that as the prospects for a BIG R recession fade and inflation moderates, the biggest question for investors in 2024 is what’s next for high-interest rates? While they were needed to curb inflation, the next step is for rates to move lower. The question now becomes at what pace.

The probable case is that rates begin to moderate in the first half of 2024, with central banks recognizing that higher rates slow growth. Simon feels that rate reductions will be done in a measured way, with central banks following the U.S. Federal Reserve closely.

For more on Simon's outlook and his take on the fixed income and equity markets in 2024, please enjoy following three-minute video:

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