Investment Manager: The monetary policy in developed countries is still too restrictive

ChainCatcher news, Jupiter Asset Management bond fund investment managers Ariel Bezalel and Harry Richards stated that the monetary policy in developed countries is too tight, especially considering the current real interest rate levels adjusted for inflation. There is still some way to go before monetary policy reaches a neutral interest rate level. Market expectations reflect this, as the market has already priced in the expectation of returning to neutral levels over the next two years.

However, the market has not priced in the risks of a more severe economic slowdown or even recession. This could force central banks to lower interest rates below neutral levels. (Jin Shi)