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3. Interest Rates: Rising Slowly

After raising rates only once in 2015 and 2016, the US Federal Reserve (Fed) is expected to pick up speed, with a total of 3 hikes anticipated in 2017. The Fed appears to be an exception however, with most other central banks in the developed and emerging markets expected to remain on hold in 2017. As long as rates do not rise rapidly, corporate bonds and equities can continue to hold up if economic and earnings growth comes through.

 

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Key Takeaways

  • With the exception of the US, most developed markets such as Europe, Japan and UK are expected to keep rates steady in 2017.
  • As long as rates do not rise rapidly, corporate bonds and equities can continue to hold up if economic and earnings growth comes through.

 

This is one of the 7 articles from Citibank's 2017 Mid Year Outlook Publication "Cautious Optimism Amid Steady growth". Please approach a Citibank relationship manager if you would like a copy. 

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