With hikes in interest rates anticipated in 2022, corporate treasurers in both the United Kingdom and United States are likely to benefit from greater returns on any short-term investing.
According to finance experts, cash-rich treasuries that have recently experienced losses on excess liquidity as a result of negative interest rates on extremely short defensive postures may be in position for a rebound.
While it is recognised that the financial uncertainty caused by the COVID-19 pandemic has led to a short investment horizon, the anticipated upward trend in interest rates is set to improve the investment landscape overall for treasuries in both the US and the UK.
Private individuals and corporate enterprises alike can take advantage of expert investment advice in Chester, Birmingham and other UK cities from wealth management firms. Specialists in portfolio management and asset selection, they can offer guidance on potential opportunities and help clients develop effective investment strategies.
Leading economic strategists and analysts forecast that interest rates in the UK and the US will see a rise sooner rather than later, in contrast to the increase in inflation driven by renewed economic activity post-lockdown.
Experts have commented that if the UK’s economy continues to grow as predicted, with inflation reaching over the current two per cent target, the Bank of England will have justification to act swiftly, with monetary policy tightening on interest rates earlier than expected.
Across the Atlantic in the US, a rise in interest rates next year is also expected in order to battle rising inflation.
