Will interest rate cuts improve the consulting hiring situation next year?

Hi there,

I would be happy to share my thoughts on your question:

• First of all, unfortunately, the effect on the consulting hiring situation is not straightforward. Typically, lower interest rates can stimulate investment and economic activity, which might increase demand for consulting services.
• Moreover, however, in the past, rate cuts of ≥50 bps have generally been an indicator of an impending recession.
• Lastly, I would highly advise that you do not make your application decision based on these macroeconomic events. Although there may be easier and harder times to apply, there has been virtually no time when consulting firms have not been hiring.

You can find more on this topic here: How to succeed in the final interview round.

If you would like a more detailed discussion on how to best prepare for your upcoming interviews, please don't hesitate to contact me directly.

Best,

Hagen

You cut rates if: 

1. you believe inflation will be lower
2. you believe growth will be lower

Rates are being cut fast. This suggests, in my opinion, that both above are into play in here. So while cutting rates is good for growth, rates are being cut because there's a deterioration in the economic climate.

Hi there,

In theory yes, however, there have been interest rate cuts in the recent past that did not have the intended effects and the economy crashed in the 2 years that followed (e.g., 2007 with the 50bps decrease in September - everyone remembers what happened next). The market structure is different now but still worth remembering.

All top consulting firms I talk to are expecting a better 2025 (even before the rate cuts), bar any black swan events...

Fingers crossed! :-)

Cheers,

Florian