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Cash & liquidity solutions

Cash & liquidity solutions

In a landscape marked by continued macroeconomic and geopolitical challenges, we’re looking to offer insights into how treasurers can optimise their cash strategies for the months ahead. In addition, our monthly Central Bank update provides an at-a-glance view of recent central bank moves.

Addressing your liquidity needs
Which Insight liquidity solution is right for you?

Current market data suggests that Irish corporate treasurers, in aggregate, earn approximately 0.5%1 on overnight cash deposits. We believe that holding excess liquidity in bank accounts may limit the opportunity to benefit from market based yields. By reallocating a portion of surplus cash into a short term, highly liquid money market fund, treasurers could potentially enhance interest income while retaining daily access to capital. For example, on an average cash balance of €100 million, reallocating 70% to a money market fund could, for illustrative purposes, result in a material uplift in annual interest income, potentially approaching €1 million. This may be an appropriate time for Irish treasurers to reassess the efficiency of their cash management approach.

We have strategies available to meet your liquidity management needs (click on the left and right buttons below for details).

Key indicators
Europe

Looking ahead

The eurozone economies face headwinds from higher energy prices. As in most regions, the risk is that inflation may rise rapidly in 2026, with the duration of the Middle East conflict strongly influencing how long it remains elevated relative to the central bank’s target of 2%. We expect inflation to be around 2.0% in 2026, moderating slightly in 2027.

Figure 1: ECB deposit facility rate

ECB deposit facility rate_Q1 2026.png


Source: European Central Bank, data as at 31 March 2026

We believe the European Central Bank is the least likely of the central banks to look through the energy price spike and will be alert for any signs of second-round effects. However, it begins from a stronger position than most others, with inflation close to target and inflation expectations consistent with its inflation target.

Figure 2: Market pricing of rate cut probability

Market pricing of rate cut probability_Q1 2026.png
Source: Insight and Bloomberg, data as at 31 March 2026.
How to get in touch
You can contact me by:

Email: julie.oconnor@insightinvestment.com

Tel: +353 1 584 6255

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