Why interest rates might not fall that far

The interest rate peak will be followed by a fall – but how far? (Image: Getty)

Wed, 12 Apr 2023

At the end of 2020, I wrote about taking out some five-year borrowing at 2.99%, a move outside of the crowd.I typically favoured the one-year rate, but my reasoning then was simple. Inflation risks were rising fast. The five-year rate may have been 80 basis points higher than the one-year rate, but sub-3% for five years amidst inflationary risks was too cheap to ignore. People often ask me what I am doing now? My answer is: not much. That might seem like a cop-out, but doing nothing is still actually making a conscious decision...

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