Jupiter Asset Management: Monetary policies in developed countries are too strict, and the market has not digested the risk of recession

According to ChainCatcher, Ariel Bezalel and Harry Richards, investment managers of Jupiter Asset Management Bond Fund, said that monetary policies in developed countries are too strict, especially the level of real interest rates.

They noted that monetary policy still has some way to go before reaching a neutral interest rate level, and market expectations already reflect the possibility of a return to neutral levels in the next two years.

However, markets are not pricing in the risk of a severe economic slowdown or even a recession, which could force the central bank to cut interest rates beyond neutral levels.