In June, the European Central Bank (ECB) decided to lower interest rates, while the US Federal Reserve chose to keep its interest rates unchanged. This marked a rare occurrence in history, as Actian investment manager Samu Lang commended the ECB for taking this step ahead of the US central bank. Lang predicts that both the ECB and the US Fed will further cut key interest rates later this year.
However, Mika Heikkilä, a portfolio manager at Proprius Partners, cautions against expecting a return to zero interest rates. He believes that interest rates will remain higher for the foreseeable future. On the other hand, Aktian Lang views a higher interest rate as positive, stating that money having a price is beneficial for investors. Heikkilä also sees the increased interest rate as a good sign, noting how the US and European economies have handled the faster-than-expected rate hikes.
Kaisa Kivipelton, a senior strategist at Danish Bank, credits the United States’ economic policy for driving recovery during the pandemic. The Market Council panel, consisting of Heikkilä, Kivipelto, and Lang, will discuss various investment topics, including the current state of the stock market and the outlook for different sectors. The panel will also delve into themes such as whether the US has reached the peak of its economic cycle and the opportunities in the Helsinki Stock Exchange.
