Perspectives · Central banks · 2026

How interest-rate cycles move different assets

Interest rates are the price of money, and they feed into the value of almost everything. But the effect differs by asset.

Bonds are the most direct: when yields rise, prices of existing bonds fall, and long-dated bonds fall further. Listed shares depend on both the discount rate and growth expectations; companies whose profits lie far in the future tend to be more sensitive. Real estate and infrastructure are affected through financing costs and the value of their income. Private credit often benefits from floating-rate loans when rates rise. Cash earns more.

The archive shows how this plays out: the Fed's rate rises of 2022, the Bank of Japan's end of negative rates in 2024, and the swing in 2026 from dissents for cuts to an actual rise.

No one reliably forecasts rates. A sound portfolio is built to survive more than one outcome.

General information only; not investment advice. Read the risk warning.