rates

Recent economic turmoil has had the positive effect of giving fixed-income back its traditional defensive kick, says Western Asset’s Anthony Kirkham. Investors should be ready to reallocate as needed to take advantage of the renewed diversification benefits.

With the Reserve Bank of Australia opting for a surprise 11th rate hike, Ruffer’s Duncan MacInnes looks at the impossible choice central banks around the world are facing: let inflation gather steam, or act and risk a financial system calamity.

Credit and equity markets both suffered a very bad 2022, as the collapse of negative correlation between stock and bond prices left no safe haven for investors. But 2023 could be a big year for bonds, and experts say investors waiting on the sidelines risk missing out.

Green shoots of relief from central banks will take some time to filter into the economy due to a confluence of factors according to Sage Capital.

More rises are likely but analysts say a confluence of factors may cap the official rate at around 3.1 per cent in 2023, providing relief to Australian households.

Mortgage holders will start to see the effects of sequential rate rises by December, but it’s after the break that the real impact will hit home.