Report
Why real interest rates will have to remain very negative
The energy transition will require a significant and lasting increase in investment (sometimes estimated at 2-3% of GDP), and the financial return on these investments will sometimes be low. For these investments to be made, the following conditions will therefore have to be met: Real long-term interest rates must remain very low (negative), so that these investments can be undertaken and financed; this will require persistently expansionary monetary policies and low nominal interest rates even if inflation rises; Central banks must continue to absorb the bonds that are issued, since their real return will not be attractive at all for private investors; they will therefore permanently switch to other asset classes (equities, real estate, etc.), for which we should expect continuous price rises.
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.