Global funds sector review - early rate cuts becoming unlikely?

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Have global interest rates peaked and are rate cuts on the horizon for the US and China? We take a look at how different regions have been coping, and how stock markets have performed.

This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

Published on 19 January 2024

It was correct at the time of publishing. Our views and any references to tax, investment and pension rules may have changed since then.

Higher interest rates were a theme we had to get used to in 2023 and will probably be the talking point in 2024 too.

As inflation increased around the world, so did interest rates as central banks fought rising prices. Higher rates have tended to cool an economy, lower rates aim to kickstart it. But this has come at a cost, especially in developed countries.

This article isn’t personal advice. If you're not sure if an investment is right for you, ask for financial advice. All investments and any income they produce can rise and fall in value, so you could get back less than you invest.

World Gross Domestic Product (GDP) growth is expected to be just 2.9% in 2024, a slower increase than 2023 and 2022. The US is expecting to grow just 1.5% down from 2022 and 2023. The Euro area is