Santander Wealth Management & Insurance (Santander WM&I), the division that includes Santander’s private banking, asset management and insurance units, believes growth and inflation will still be causes for concern next year; but markets are already showing signs of a comeback. “We expect that confirmation of peak inflation in Q1 2023 may lead to a pause in interest rate hikes by central banks, which would set in motion the recovery process in fixed-income markets”, said Víctor Matarranz, global head of Santander WM&I, in his opening letter in the 2023 Market Outlook report titled ‘The great rate reset’. According to Matarranz, “The recovery of more cyclical assets, like equities, should get underway in H2 2023 if central banks announce lower interest rates.
