The period of zero interest rates led to lax cash management

The very low interest rates from the early 2010s to 2021 led to lax cash management: both households and companies accumulated far too much cash, which had no cost since interest rates were zero. Currently, the rise in interest rates will encourage cash flow optimisation, which may involve: For companies, deleveraging or acquisitions; For households, reinvestment of cash in other financial assets, including bonds whose yields are rising. We should therefore not forget the reallocation of cash holdings that will be caused by the rise in interest rates.