The European Central Bank lowered interest rates in June, but the US Federal Reserve kept its interest rates unchanged.
Actian investment manager Samu Lang hats off to the ECB.
“It seems to be the first time in the history of the ECB that the ECB moves before the US central bank. A small feather in the hat from the perspective of the ECB’s independence.”
Lang estimates that the ECB will cut its key interest rates once more and the US Fed once more this year.
of Proprius Partners portfolio manager Mika Heikkilä reminds that there is no point in looking for zero interest periods.
“It’s not worth waiting for a return to the days of zero interest rates. We will stay higher.”
Aktian Lang considers a higher interest rate to be a good thing.
“A zero interest rate is not normal. Now it’s a truly wonderful situation for an investor, when money has a price.”
In Heikkilä’s opinion, one can see positive things in the increased interest rate.
“In the United States and Europe, interest rates were quickly raised from zero. And the economy took it. It’s pretty confusing. If it had been said two years ago that interest rates would be raised so quickly, collapses would have been predicted. Nothing big has been seen.”
Danish Bank senior strategist Kaisa Kivipelton according to the recovery in the United States during the corona crisis.
“In the United States, the economic policy was very stimulating.”
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Market narrate
This week, the Market Council is talking about what a stock investor’s summer looks like.
Can the investor stay on summer vacation, or are there places to buy right now? Has the US reached the peak of the cycle? And is it worth investing in the Helsinki Stock Exchange at all?
Portfolio manager Mika Heikkilä from Proprius Partners, Danske Bank’s senior strategist Kaisa Kivipelto and Aktia’s investment director Samu Lang will join in the discussion.
Market Council is hosted by Kauppalehti’s editor-in-chief Soili Semkina.