Interest rates are rising around the world as central banks are trying to cool off the post-pandemic economy with historically high inflation levels. Recently, US Fed Chairman Jerome Powell indicated that an interest rate hike of 50 basis points would be on the table for the May meeting. A higher interest rate environment is a tailwind for the financial industry as it increases the interest income.
Furthermore, the global financial services market is projected to reach $28.53 trillion by 2025, growing at a CAGR of 6%., Research And Markets report. Consequently, the banking industry should benefit from this growth.
