Where next for interest rates? – 8 things investors need to watch out for

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Global interest rates are up dramatically since March 2022. But what is the situation now, how does it compare to the past, and what could be next?

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 3 November 2023

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

The US Federal Reserve (Fed) and the Bank of England (BoE) both decided to hold interest rates this week. That means that, at least for another month, the BoE base interest rate will remain at 5.25% while across the pond, the target rate will hold at 5.25-5.5%.

While this was somewhat expected, the long-term outlook is a bit murkier. Here’s a closer look at eight things investors should keep an eye on from the past and what could be next for interest rates across the globe.

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

In 1979, Paul Volker became head of the Fed. US interest rates were raised significantly, sending the economy