Navigating the Unpredictable Waters of Interest Rates: Insights and Misconceptions

Central bankers and market practitioners were clearly wrong-footed by the recent rise in interest rates. “Lower for longer” was the mantra until a few years ago. Then came “higher for longer” and now possibly “lower slightly sooner than expected”. Observing these oscillating forecasts, a bystander might conclude that nobody knows anything about the future direction of interest rates. And that’s how it is.

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