Higher Interest Rates Could Exacerbate Inflation in Longer Term by Deterring Investment

Mahesh Agrawal, Assistant Director, Acuity Knowledge Partners recently did an exclusive interview with the Wall Street Journal. In the interview, he warned that emerging-market bonds carry higher risk, as investors may shift back to developed-market bonds as interest rate differentials diminish.

‘We can't rule out these possibilities for sure. If next winter is cold, we will see energy shortages again, with energy prices rising to levels seen last year’, he adds.