Market commentary with Joachim Döring

Our experts don’t only monitor the capital markets intensively, but are also active market participants in the interest of our clients on a daily basis. Here you can regularly find the latest market commentary of our expert Joachim Döring, Head of Wealth Management.

16. July 2021

Interest rate hike sooner rather than later?

I wouldn't want to trade places with the decision-makers at the U.S. Federal Reserve at the moment. They never tire of repeating that the sharp rise in inflation is only a temporary phenomenon. There are arguments in favor of this. So far, the data do not indicate that a wage-price spiral has been set in motion that would lead to higher inflation in the long term. However, U.S. inflation rose to 5.4 percent in June. Even excluding energy and food prices, core inflation was 4.5 percent. This is the highest level in thirty years. With such data, pressure is growing on the central bank to perhaps raise interest rates sooner than previously planned. The markets are already speculating on this. On our side of the Atlantic, the situation is comparatively relaxed. The new monetary policy strategy that the ECB has prescribed for itself gives our central bank even more flexibility. I expect it to use this leeway to keep interest rates very low for a very long time. Stay healthy!

Joachim Döring