The European Central Bank (ECB) recently made the decision to lower interest rates, while the US Federal Reserve opted to keep their rates unchanged. Samu Lang, an investment manager at Actian, commended the ECB for taking this move before the US central bank and highlighted the independence of the ECB. Lang predicts that both central banks will cut their key interest rates again this year.
On the other hand, Mika Heikkilä from Proprius Partners believes that waiting for zero interest rate periods is not beneficial as he thinks interest rates will stay higher. Lang sees a higher interest rate as a positive for investors because it reflects a normal situation where money has value. In contrast, Heikkilä notes that both economies in Europe and America have handled unexpected quick increases in interest rates well just a couple of years ago.
Kaisa Kivipelton, senior strategist at Danish Bank, attributes the recovery in the United States during the pandemic to very stimulating economic policies. The Market Council discussed whether it was time for stock investors to invest during summer and what was happening with US economic cycle. Participants included Mika Heikkilä, Kaisa Kivipelto and Samu Lang who were hosted by Soili Semkina, editor-in-chief of Kauppalehti’s newspaper. They delved into various topics related to finance, investment opportunities and economic landscape.
In summary, while both central banks are making different decisions on interest rates at present moment in time, there is still much discussion among experts about how these changes will impact investors and economies going forward.