Interest Rate Hikes: A Chart-Topping Conundrum

Interest rate hikes around the world have been of great concern lately. The hikes stem from (including but not limited to) inflation, supply and demand, and credit risk, all resulting in poor economic activity. Not only do rate hikes have an impact on the currency, but they also impact consumer behaviour. Below we look at interest rates from Europe, the UK, the US, and South Africa and how they impact consumer spending power.

US interest rates

US interest rate hikes from April 2022 to June 2023

South African interest rates

South African Interest rates from April 2022 to July 2023

Interest rates impact valuation levels across asset classes and currencies as can be seen in below:

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