Equilibrium interest rates are valuation indicators for the current situation on interest rates. The ones shown here are based on the dependency of worldwide monetary stimuli and steepness of the yield curve. The more expansive the global trend in monetary policy, the steeper the curve, therefore the higher the equilibrium interest rates as a rule.
Major imbalances are normally corrected, which can take several months. Equilibrium interest rates are thus one of the factors used for interest-rate forecasts.
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