Standard Chartered chief strategist Eric Robertson said we have entered an era
of structurally higher interest rates. He said US rates are unlikely to return
to zero and that rates in Europe and Japan have also risen. A key long-term
implication will be tighter capital allocation—financing costs of 4–5% will
force stricter project selection compared with a zero-rate environment. He added
this does not imply capital scarcity: tens of trillions of dollars remain parked
in US money-market funds and alternative asset managers hold large pools of
capital.
