Interest rates are back. Will that change your plans?
Bonds are once again offering higher returns. But does that mean their role has changed? And does the traditional combination of equities and bonds still work the way it used to? Mailee Hovsepian and Heng-Ta Quach, Customer Relationship Managers at KBC Asset Management, discuss the impact of rising interest rates on financial markets and on a diversified investment portfolio.
22-09-2026
How are investors reacting?
Good business results support the market.
The corporate results published for the third quarter boosted the broad stock markets. Although company profits rose less sharply than in the previous quarter, they underpinned the equity markets during the recent period of volatility.
What happened in the world?
Central banks keep policy rates unchanged
The themes that have dominated the news in recent weeks continued to attract attention. This time, however, investors viewed them with more confidence.
Energy prices also remain high and are keeping inflation above its target level. Even so, the central banks in the US and euro area have left their key rates unchanged for now. Long-term interest rates even fell as investors started showing a renewed interest in bonds. As a result, bond prices rose.
There was again uncertainty among the AI-related technology companies. Several major players announced massive investments once again. Investors are increasingly wondering when and to what extent these investments will translate into additional profits.
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