This made it a difficult year for investors, especially as rising interest rates also hit bond market performance – normally, when stocks do badly, bonds do better.

But the situation improved towards the end of the year. We’ve seen inflation start falling in the US and UK, and both countries’ central banks raised interest rates in December by a little less than they had previously – which could be a small step in a more positive direction.

Our latest investment update covers this in more detail and looks at what it could mean for those with investments in 2023. It also includes our current expectations for UK interest rates and inflation next year.




When investing, the value of investments can fall as well as rise, and you may not get back the full amount you invest. Eligibility criteria, fees and charges apply. You should continue to hold cash for your short-term needs.

This material is published by NatWest Group plc (“NatWest Group”), for information purposes only and should not be regarded as providing any specific advice. Recipients should make their own independent evaluation of this information and no action should be taken, solely relying on it. This material should not be reproduced or disclosed without our consent. It is not intended for distribution in any jurisdiction in which this would be prohibited. Whilst this information is believed to be reliable, it has not been independently verified by NatWest Group and NatWest Group makes no representation or warranty (express or implied) of any kind, as regards the accuracy or completeness of this information, nor does it accept any responsibility or liability for any loss or damage arising in any way from any use made of or reliance placed on, this information. Unless otherwise stated, any views, forecasts, or estimates are solely those of the NatWest Group Economics Department, as of this date and are subject to change without notice.

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