• The Bank of Japan raised policy rates after many years, ending the era of negative interest rates.
  • However, banks such as the Federal Reserve (Fed) and Bank of England are looking to cut rates this year, if inflation returns to their targets.
  • These divergences in global economy and central bank policies may present opportunities in bonds and equities.

Actionable Ideas

  • Global government bonds
    Upcoming interest rate cuts and regional divergences could create opportunities for global fixed income investors.
     
  • Global quality credit
    Resilient global economic outlook, prospects of cut rates from Fed and European Central Banks should support high quality credit.

Key Dates

27 Mar

Eurozone Economic
Sentiment Index

 

28 Mar

USA, 3d estimate of
Q4 2023 GDP

 

29 Mar

USA, Core PCE Inflation

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