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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.

Our latest thinking on money market funds

Key indicators - Q3 2026
Europe

Looking ahead

In the eurozone, we believe economic growth is likely to remain subdued, particularly relative to the US, with GDP expected to remain below 1% in 2026 before improving modestly in 2027. Consumer confidence remains fragile amid ongoing geopolitical uncertainty, while elevated savings rates continue to weigh on demand. However, the labour market has remained resilient and Germany’s planned fiscal expansion should provide some support, despite the broader growth outlook remaining weak. We expect GDP to expand by 0.9% in 2026, with an improvement to 1.0% in 2027.

Figure 1: ECB deposit facility rate

Source: European Central Bank, data as at 30 September 2026

We expect the ECB to raise rates once more before pausing as inflation gradually returns towards target, with policy easing thereafter as price pressures continue to moderate. We see 10-year German government bond yields ending the next 12 months slightly above current levels at around 3.1%, with the curve steepening as shorter-dated yields decline once it becomes clearer that policy rates have peaked. Fiscal concerns, particularly in France, may also contribute to periods of volatility in sovereign bond markets.

 

Figure 2: Market pricing of rate cut probability


Source: Insight and Bloomberg, data as at 30 September 2026.
Addressing your liquidity needs
Which Insight liquidity solution is right for you?

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

How to get in touch
You can contact me by:

Email: julie.oconnor@insightinvestment.com

Tel: +353 1 584 6255

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