What does a higher interest rate mean for investors?

Many forecasters believe that inflation will remain above target for quite some time yet. This would indicate that higher real rates are required to bring inflation back to target in a timely manner. If the neutral level of interest rates has risen, and central banks decide to keep rates below this new neutral rate, it will make it difficult to bring inflation back to target on a sustained basis. Ultimately that would mean central banks are choosing to accept higher levels of inflation over the longer-term. Given the importance of this topic the BNY Mellon IM provides its thoughts on how...