The ECB’s rate hike is good news for money that is parked in overnight and fixed-term deposits or current accounts.
(Photo: imago images/Future Image)
Frankfurt, Zurich Since Thursday, the most important key interest rate in the euro area has not been negative for the first time in eleven years. For investors, this change in monetary policy signals new conditions: theoretically, higher interest rates make bonds and money in accounts more attractive again.
However, this only applies if there is a return in real terms – i.e. after deducting inflation. And that’s rare so far. In the case of equities, real estate and alternative investments, on the other hand, the higher costs of financing debt carry weight. Gold suffers as an investment with no current income, unless crises intensify and a safe haven is required. The Handelsblatt overview of investing in the turnaround in interest rates.
Equities: the end of the flood of money
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