For months on end, investors have been wondering when interest rate rises will come and what the best investment strategy for such rises is. Since interest rates dropped to historical lows of 0.5% in the UK in March 2009 and to 0.25% in December 2008 in the US, economists and markets alike have been aware that rates would have to rise once the economies rebounded.
The eurozone already raised interest rates from the 2009 to 2011 level of 1%, but then lowered them again. And, the European Central Bank (ECB) has just introduced yet another drop from what was an already record low of 0.25% to 0.15%. Meanwhile, the general view is that the monetary committees of the Bank of England and the US Federal Reserve are looking to raise rates in the near term.
