Interest rates are climbing worldwide as central banks attempt to cool off their post-pandemic economies. Recently, the Federal Reserve hiked the interest rate by 25 basis points, responding to an inflation spike to the highest level in the past 40 years.
This is good news for the financial companies, as they thrive in the high-interest environment. Consequently, these industry-specific tailwinds should boost the revenue from interest-related parts of their businesses. Furthermore, the global financial services industry is estimated to grow at a CAGR of 6% between 2021 and 2025, reaching $28.53 trillion in the terminal year.
