• If you’re wondering what’s keeping interest rates so low, read our latest whitepaper here

WHITEPAPERS

Part I: low rates, assets inflate

SUBSCRIBE FOR FREE TO UNLOCK THIS WHITEPAPER

In this whitepaper you will discover:

  • Why low interest rates are the new normal
  • The likely five key structural drivers of low interest rates
  • The profound implications for asset prices
  • Is Japan foretelling our future?
SUBSCRIBE FOR FREE TO UNLOCK THIS WHITEPAPER

In this whitepaper you will discover:

  • Why low interest rates are the new normal
  • The likely five key structural drivers of low interest rates
  • The profound implications for asset prices
  • Is Japan foretelling our future?

Part I: low rates, assets inflate

Across the developed world, historically low interest rates are the new normal – not just temporary. Our latest Whitepaper points to five structural reasons driving this change.

Although low rates are highly advantageous for those with an ability to buy assets, they come with some strong downsides.

The whitepaper looks at the example of Japan, which has used low rates to try to stimulate its moribund economy. Today, Japan is stuck in a state of permanent monetary stimulation. This has had the unintended consequence of driving down inflation and rates even further.

If rates stay low, for asset-owners, the future might seem bright. But for society as a whole, these dynamics will create difficult problems that governments will find challenging to overcome.

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Andrew Macken is the Chief Investment Officer of the Montaka funds and the Montgomery Global funds. He established MGIM in 2015 in partnership with Montgomery.

This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.