What comes after peak interest rates?

By the second quarter of 2024, rate cuts will be firmly on the agenda. These will be billed as ‘fine-tuning’ says abrdn. Nonetheless, monetary policy will still be restrictive. Central Banks will remain vigilant and communicate their readiness to retighten if signs of persistent inflation re-emerge. Against this backdrop, abrdn sees value in UK gilts and that the return outlook for European and global government bond markets is strong.