Strategies for Investing Amid Interest Rate Volatility
Rising interest rates are generally seen as bad news for share markets. However, higher interest rates are usually being imposed to dampen inflation, which is another phenomenon that can negatively impact share prices. Understanding the mechanics that underpin the relationship between interest rates and markets can help investors anticipate how changes may impact their investments. They can then be better prepared to make informed financial decisions. While periods of high inflation and rising interest rates can feel destabilising and create uncertainty, both are part of a normal business cycle and may present investment opportunities.
Are further rate hikes likely?
The Reserve Bank of Australia recently decided to hold the cash rate at…
