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What’s impacting your investments? November 2017

This month’s market update focuses on what impact the interest rate rise could have on investments and positive economic growth in emerging markets

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Topic: Economy, Investing

All investment carries risk and it is important you fully understand these risks and are willing to accept them. You may get back less than you invested.

Video Transcription

Governments and central banks will often work together to keep the economy evenly balanced between too much inflation and sluggish growth.

When they need to encourage spending they lower interest rates and when they can’t lower them anymore, they can print more money and pump it into the economy.

Known as quantitative easing, this process was a popular way to boost growth in the wake of the financial crash, despite the potential risk of hyperinflation, but ten years later, things have changed.

Now most major markets around the world are returning to normal and in both the US and now UK we’ve also seen interest rates slowly start to creep back up, with indications of future hikes on the way.

So while it may be difficult to say what the long-term impact of low-interest rates and quantitative easing has had on markets, what is clear is that investors are starting to see real signs of positive growth and October is another step in the right direction for the global economy.

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