Interest rates in 2025: What are the consequences for your investments?

After several years of historic interest rate hikes, central banks are taking a more cautious stance in 2025. For example, since the beginning of the year, the Bank of Canada has begun a gradual easing of its monetary policy, with a first rate cut in June. The European Central Bank, for its part, has recently left its key rates stable while the United States Central Bank is talking about gradual cuts. What does this mean for your money?

Faced with these adjustments, three major impacts are probably to be anticipated.

•  Real estate: Mortgage rates are starting to fall slightly, but access to credit remains selective. In other words, more stable rates are equivalent to slightly more accessible loans. Opportunities are gradually returning to some markets, but prices are still high in many regions.

• Savings and investments: Guaranteed investment accounts and high-interest accounts are losing some of their appeal. It may be time to reassess your performance strategy, and why not, rethink the diversification of your portfolio.

• Bonds and equities: we are seeing the return of a more favourable environment for the markets, but with caution as volatility remains present. Among the reasons that support this volatility, we can mention geopolitical and economic uncertainties, the potential rise in interest rates, the risk of recession.

In short, after years of tightening, the landscape is changing, and it is crucial to adjust your financial strategy. The right question to ask yourself right now is: Is my portfolio still aligned with today's economic reality?

At GesFin International, we support our clients in transforming economic developments into concrete opportunities; to adapt their financial strategy to each economic cycle.  So don't hesitate to contact us for a personalized diagnosis of your financial situation.