Investing Liquidity – KPMG in Germany

As economic growth stalls and inflation eases, central banks are gradually reducing key interest rates. For businesses, this shift raises important questions about how to manage and invest excess liquidity. A change in mindset is required: How can companies put their cash to good use when yields are falling? 

In this article, we explore how corporate treasurers can respond to the new interest rate environment and which strategies are worth considering now.

The German Council of Economic Experts expects the country’s economy to be flat in 2025.1 The European Commission shares that outlook.2 The OECD is slightly more optimistic, forecasting 0.4% growth for Germany next year. For 2026, a modest recovery is expected, with growth of just…

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