2025 Investment Outlook for U.S. Global Liquidity Investors
U.S. Global Liquidity investors can anticipate continued real yields across the entire global liquidity product lineup in 2025
In order to enter the page please read the information below and affirm by clicking the accept button that you have read and understood the information provided.
FOR PROFESSIONAL CLIENTS/ASSET OR WEALTH MANAGERS ONLY – NOT FOR RETAIL USE OR DISTRIBUTION
I affirm that I am a Professional Client / Tied Agent as defined in the Markets in Financial Instruments Directive (MiFID) published by the European Commission.
This is a marketing communication and as such the views contained herein are not to be taken as advice or a recommendation to buy or sell any investment or interest thereto. Reliance upon information in this material is at the sole discretion of the reader. Any research in this document has been obtained and may have been acted upon by J.P. Morgan Asset Management for its own purpose. The results of such research are being made available as additional information and do not necessarily reflect the views of J.P. Morgan Asset Management. Any forecasts, figures, opinions, statements of financial market trends or investment techniques and strategies expressed are, unless otherwise stated, J.P. Morgan Asset Management’s own at the date of this document. They are considered to be reliable at the time of writing, may not necessarily be all inclusive and are not guaranteed as to accuracy. They may be subject to change without reference or notification to you. It should be noted that the value of investments and the income from them may fluctuate in accordance with market conditions and taxation agreements and investors may not get back the full amount invested. Changes in exchange rates may have an adverse effect on the value, price or income of the products or underlying overseas investments. Past performance and yield are not a reliable indicator of current and future results. There is no guarantee that any forecast made will come to pass. Furthermore, whilst it is the intention to achieve the investment objective of the investment products, there can be no assurance that those objectives will be met. J.P. Morgan Asset Management is the brand name for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide. To the extent permitted by applicable law, we may record telephone calls and monitor electronic communications to comply with our legal and regulatory obligations and internal policies. Personal data will be collected, stored and processed by J.P. Morgan Asset Management in accordance with our EMEA Privacy Policy https://www.jpmorgan.com/emea-privacy-policy
As the product may not be authorized or its offering may be restricted in your jurisdiction, it is the responsibility of every reader to satisfy himself as to the full observance of the laws and regulations of the relevant jurisdiction. All transactions should be based on the latest available Prospectus, the Key Investor Information Document (KIID) and any applicable local offering document. These documents together with the annual report, semi-annual report and the articles of incorporation for the Luxembourg domiciled products are available free of charge upon request from JPMorgan Asset Management (Europe) S.à r.l., 6 route de Trèves, L-2633 Senningerberg, Grand Duchy of Luxembourg or your J.P. Morgan Asset Management regional contact.
This communication is issued in Europe (excluding UK) by JPMorgan Asset Management (Europe) S.à r.l., 6 route de Trèves, L-2633 Senningerberg, Grand Duchy of Luxembourg, R.C.S. Luxembourg B27900, corporate capital EUR 10.000.000.
Please refer to our Privacy and Cookie Policies via the footer link.
We are committed to combating financial crime and the prevention of money laundering. Accordingly we may need to verify your identity and carry out appropriate security checks.
Whilst we will use every reasonable effort to ensure that the information contained on this Site is accurate as at the date of publication of such documents, we cannot guarantee the accuracy, suitability or completeness of any such information or the availability of the Site. We accept no liability for any data transmission errors such as data loss or damage or alteration of any kind. Accordingly JPMorgan Asset Management (Europe) S.à r.l. excludes any liability for any loss and/or damage (direct or consequential) arising from the use of any part of this Site.
All copyright, patent, intellectual and other property in the information contained in this Site is held by JPMorgan Asset Management (Europe) S.à r.l., unless otherwise indicated. No rights of any kind are licensed or assigned or shall otherwise pass to persons accessing this information. You may download or print copies of the reports or information contained within this Site for your own private non-commercial use only, provided that you do not change any copyright, trade mark or other proprietary notices; all other copying, reproducing, transmitting, distributing or displaying of material on this Site (by any means and in whole or in part) is prohibited.
* US Person includes, but is not limited to, a person (including a partnership, corporation, limited liability company or similar entity) that is a citizen or a resident of the United States or is organised or incorporated under the laws of the United States. Certain restrictions also apply to any subsequent transfer of Shares in the United States or to US Persons. Should a Shareholder become a US Person and such US Person is not compulsory redeemed, such US Person may be subject to US withholding taxes and tax reporting.
Discover our vast array of liquidity insights covering global investment news and trends that may impact your cash portfolios
U.S. Global Liquidity investors can anticipate continued real yields across the entire global liquidity product lineup in 2025
Explore the Global Liquidity EMEA Investment Outlook 2025 with our insights on expected rate cuts by the Federal Reserve, ECB, and BOE. Discover how these changes may impact money market strategies and investment horizons in the US, Europe, and UK. Learn about potential economic growth challenges and strategic opportunities in the evolving global liquidity landscape.
The 2025 interest rate outlook for Asia-Pacific (APAC) will be influenced by geopolitical risks, escalating trade tensions, and the Federal Reserve policy. Regional factors such as domestic economic conditions and the effectiveness of China’s stimulus will also shape central bank decisions.
At the conclusion of their December monetary policy meeting, the European Central Bank (ECB) cut their three key policy rates by 25 basis points (bps) for the third consecutive meeting.
Explore insights for cash investors navigating the widening economic divergence between the US and Europe. Discover how J.P. Morgan's liquidity strategies are positioned to capitalise on current market conditions, focusing on credit quality and duration management amidst varying central bank policies and recession risks.
The Bank of England's Monetary Policy Committee voted 8-1 to lower the Bank Rate by 25 basis points to 4.75%, with Governor Andrew Bailey emphasizing a cautious approach due to the UK budget's economic impact. The committee plans to continue gradual, quarterly rate reductions, focusing on progress in services inflation before making further adjustments.
Explore the ECB's October strategic rate cuts amid economic uncertainty. Discover how data-driven decisions shape monetary policy and market reactions, with insights from ECB President Christine Lagarde. Stay informed on the latest economic forecasts and implications for cash investors.
Explore the benefits of standard money market strategies amid non-recessionary rate cuts, including higher yields and extended Weighted Average Maturity (WAM). Understand why cash investors are increasingly opting for these strategies.
The Federal Open Market Committee (FOMC) took the first step in easing monetary policy with a long-anticipated cut to the federal funds target rate of 50 basis points to 4.75-5.00%.
Explore the European Central Bank's recent decision to cut interest rates and its data-dependent approach to future monetary policy. Understand the implications for inflation, GDP growth, and market reactions, as well as strategies for EUR cash investors
Explore how major central banks' policy adjustments are impacting liquidity investment strategies. Learn about the anticipated rate cuts, strong credit fundamentals, and how to adapt investment strategies in the current economic environment.
The ECB and BoE are cautiously approaching rate cuts, with decisions being heavily data-dependent. The ECB is expected to continue cutting rates at alternate meetings into 2025, while the UK base rate may remain unchanged in the near term. Both central banks are balancing the need to support economic growth with the risk of resurgent inflation.
Moderating inflation has allowed central banks to shift their focus towards fostering economic growth, signaling an impending monetary policy pivot. While markets have quickly priced in multiple rate cuts, the pace and magnitude of central bank actions remain uncertain. For APAC cash investors, the implications of the Federal Reserve (Fed) policy continues to be significant; but local inflation, economic conditions, and political nuances will also influence regional cash investment strategies.
The Monetary Policy Committee (MPC) voted by a narrow majority of 5-4 to reduce the Bank Rate by 25 basis points to 5%. This is the first cut since March 2020. Governor Andrew Bailey stressed a cautious approach and said the Bank of England (BoE) is alert to risks of another surge in inflation.
On 22 July, the People’s Bank of China cut its 7-day Reverse Repo rate and Loan Prime Rate by 10 basis points. The decision shows the central bank is shifting its focus to the 7-day Open Market Operation rate as its new policy benchmark.
Predicting and timing a rate-cutting cycle is challenging. Focusing on what they can control can help cash investors to capture current yields while strategically positioning for future rate declines.
At its monetary policy meeting on the 6 June, the European Central Bank (ECB) cut its key interest rates by 25 basis points (bps). The rate cut was broadly signalled by the central bank and widely expected by investors.
Singapore and HK interest rates have moved sharply higher over the past few years, abetted by a high correlation with US monetary policy. However, they have echoed rather than mirrored the upward trend in US interest rates.
Falling inflation across APAC has raised expectations of rapid central bank rate cuts to boost flagging domestic growth – however APAC central banks appear reluctant to diverge from the Fed.
We believe that interest rates in developed markets have peaked, with central banks likely to initiate gradual cuts rather than returning to the near-zero levels seen in recent years. The anticipation of declining interest rates, alongside a resilient macroeconomic outlook and favourable all-in yields, could present one of the best environments for standard money market strategies in the last 15 years, in our opinion.
With US inflation finally trending downwards, the Federal Reserve (Fed) has pivoted to a more dovish bias, although the timing and extent of future rate cuts remains uncertain. Across the Asia-Pacific (APAC) region, inflation is also declining, raising the prospect of lower regional interest rates. However, the impact will likely be more variable due to country-specific nuances.
With Q1 '24 underway, Kyongsoo Noh answers the top five questions on the minds of liquidity investors.
At its first monetary policy meeting of 2024, the RBA left its OCR unchanged at 4.35%. The decision was in-line with market expectations, although the tone of the accompanying statement was more hawkish than expected.
The BoE held the Bank Rate steady at 5.25% for the fourth consecutive meeting but removed their bias towards the next move being another hike in rates. Notably, the decision was not unanimous as two members continued to vote for a 25 basis point (bp) hike, while one member voted for a 25bp cut leaving six members, including the Governor voting for unchanged rates.
On 29th January, the Monetary Authority of Singapore (MAS) decided to maintain the prevailing rate of appreciation of the S$NEER policy band, with no change to its width nor centre point.
At its first monetary policy meeting of the year on 25 January 2024, the European Central Bank (ECB) kept all key interest rates on hold. This was the third consecutive meeting to conclude with no change to monetary policy, with the last rate hike occurring in September 2023.
BOE voted to maintain Bank rate at 5.25% (6:3 split for hike) again. The Panel maintained its guidance that rates would need to be “sufficiently restrictive for sufficiently long” to curb inflation.
At its monetary policy meeting on 14th December 2023, the European Central Bank (ECB) kept all key interest rates on hold, for a second consecutive meeting. The ECB announced that reinvestments of the Pandemic Emergency Purchase Program (PEPP), will decrease by 50% from July 2024. President Lagarde stated that the Governing Council (GC), will not let its guard down, in the fight against inflation.
The Federal Open Market Committee (FOMC) left the federal funds target range unchanged at 5.25-5.50%, as anticipated. However, the quarterly update for the Summary of Economic Projections (SEP) suggested a dovish bias, with the “dots” pointing towards three cuts for next year, with a rate at the end of 2024 of 4.50-4.75%. The market reacted by increasing expectations for rate cuts in 2024, pricing in cuts more aggressively than the Fed.
At their last monetary policy meeting of the year on 5 December, the Reserve Bank of Australia (RBA) left the Overnight Cash Rate (OCR) unchanged at 4.35%. This was in line with market expectations.
At its semi-annual monetary policy meeting on 13 October, the MAS decided to maintain its prevailing monetary policy stance Fig 1a for a second meeting - following five previous upward adjustments. The decision was In-line with expectations, with the central bank leaving the slope, band width, and mid-point of SGD NEER unchanged.
At Michele Bullock’s first monetary policy meeting as the Governor, the Reserve Bank of Australia (RBA) decided to leave the Overnight Cash Rate unchanged at 4.10%. This was the fourth pause in the central bank’s rate hiking cycle.
CEO Asset Management Americas, Head of Global Liquidity
Head of Investment Specialists EMEA & Asia, Global Liquidity
Head of Global Liquidity Sales, International
Global Head of Liquidity Clients
Global Head of Product Strategy and Morgan Money
Global Head of Investment Specialists
Portfolio Manager, Global Head of Managed Reserves
Portfolio Manager, Managed Reserves Europe
Portfolio Manager, EUR Liquidity Strategies
Portfolio Manager, Liquidity Strategies
Portfolio Manager, Managed Reserves Europe
CEO Asset Management Americas, Head of Global Liquidity
Head of Investment Specialists EMEA & Asia, Global Liquidity
Head of Global Liquidity Sales, International
Global Head of Liquidity Clients
Global Head of Product Strategy and Morgan Money
Global Head of Investment Specialists
Portfolio Manager, Global Head of Managed Reserves
Portfolio Manager, Managed Reserves Europe
Portfolio Manager, EUR Liquidity Strategies
Portfolio Manager, Liquidity Strategies
Portfolio Manager, Managed Reserves Europe
You appear to be located in:
United States
Do you want to be redirected?
Change to another country/region