Although the equity market price-to-earnings ratio will be pulled lower as bond yields rise, it is not likely to be dramatic or create a market panic.
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The race to move cash rates higher across the world has started and will accelerate in earnest from May in many parts.
Most central banks will lift rates, but some outliers won’t and will delay for months. This creates a dilemma for investors because while high inflation readings are everywhere, current interest rate settings are inconsistent with these observations.
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Original URL: https://www.afr.com/wealth/personal-finance/what-to-watch-as-central-banks-start-raising-rates-20220419-p5aeis
