Report
Patrick Artus

Why are long-term interest rates resilient to the rise in expected inflation?

We look at the situations of the United States, the euro zone and the United Kingdom. In the recent period, expected inflation has risen sharply and central banks have become more determined to combat it. However, the rise in long-term interest rates has been quite modest relative to the rise in expected inflation. Why are long-term interest rates resilient to the rise in expected inflation? Expectations that central banks' response to inflation will be rather limited? A significant flow of bond purchases from residents or non-residents? Both explanations are relevant.
Provider
Natixis
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.

 

Analysts
Patrick Artus

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