„Are the interest rates going to fall much further?“ My Key Note „Setting the Scene“, at the Latham & Watkins Corporate Finance Day – Bringing part of Frankfurts Finance Experts community together. A very relevant information for this audience in regards to liquidity and debt structures.
With inflation being present for nearly 2,5 years, I confirm my mantra from early on again: Inflation is here to stay. And so will higher interest rates.
➡️ Inflation rates won’t fall much further, but even increase midterm.
➡️ Price drivers are nearly immune against interest rate increases.
➡️ Interest rates are the tool in in Central Banks‘ hands. They have no choice, but to use them.
6 Inflation drivers – 1 Counter effect – 4 out of 6 are ESG related.
3D of strategic inflation drivers grow in magnitude and severance:
➡️ Deglobalization
➡️ Demography
➡️ Decarbonisation
3 additional inflation drivers gain ground rapidly:
➡️ „Disaster“
➡️ „Climateflation“
➡️ „Legisflation“ ESG-Legislation
1 Counter effect
➡️ Digitalization – But earliest effect on consumer prices not prior to 2026.
6 Inflation drivers – 1 Counter effect: Inflation is here to stay. And higher interest rates, too.
Most of the audience had hoped for interest rates falling soon, but appreciated the newly won clarity highly.
Opening and joining this outstanding event had been a great pleasure and inspiration. Even having been in Finance positions for 20 years, this special world is relatively new to me, so I truly enjoyed understanding it better.
Ruediger Malaun Dr. Alexander Lentz Frank Grell Johannes Messing, CFA Mike Zöller Daniel Splittgerber Dennis Glatzel Paulina Zulawski Latham & Watkins Regina Mehler
Zuerst in Linkedin erschienen.