Report
A central bank interest rate cut only boosts share prices if it is unexpected
This result is consistent with the theory: if an interest rate cut is already expected, its effect is already factored into share prices and the cut does not drive them higher when it takes place. So it is only unexpected interest rate cuts that boost share prices. A comparison of the situations in late 2018 and March 2020 provides a good illustration.
Provider
Natixis
Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.
Patrick Artus
Other Reports from Natixis
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.