Rate expectations: Table Mountain or Matterhorn?

Staci West 12/04/2024 in Fixed income

Bryn Jones, manager of Rathbone Ethical Bond fund, tells us whether he believes we’re going too see a Table Mountain or Matterhorn with interest rates.

Well, [it’s] really difficult to say. I don’t think we’re going to be at a Matterhorn because we’ve already had the peak in rates, and it’s been quite some time since we’ve had a rate hike or a rate cut. So we’re already into that Tabletop Mountain. You know, arguably, I’m thinking more of the the Devil’s Tower in Wyoming – the one that we see in [the film] ‘Close encounters of the Third Kind’ – where we’re going to have a bit of a tabletop, but then we might see rates come down at some point this year, which is being priced into the market. My view is that the market’s probably priced in that a little bit too aggressively, a little bit too early. So, yeah, Devil’s Tower, Wyoming rather than Matterhorn or Tabletop Mountain.

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