BX · 10-Q · 2026Q3 · Full report

Interest Rate Environment

Blackstone Inc. · 2026-11-06 · Importance 38 · Surprise 24

Blackstone said higher base rates and continued rate volatility have slowed the commercial real estate recovery and are likely to pressure some holdings’ values and transaction activity, including realizations. Increased capitalization rates contributed to weaker real estate values in the third quarter of 2026, with lower-growth multifamily holdings particularly affected. Management expects these conditions to remain a headwind, although interest-rate hedges partially offset declines.

Key facts

• The Federal Reserve raised its federal funds target range to 3.75%–4.00% in September 2026 and held it steady in October. source
• Three-month SOFR increased 22 basis points quarter over quarter to 3.90%. source
• The European Central Bank raised its deposit facility rate by 25 basis points to 2.50% in September 2026 amid continued inflationary pressures associated with higher energy prices. source
• The Bank of Japan raised its policy rate to 1.25% in September 2026 from 1.00%. source
• In the third quarter of 2026, the ten-year U.S. Treasury yield increased 82 basis points to 5.28%, its highest level in nearly two decades, and later declined to 4.91% as of November 2, 2026. source
• Multifamily holdings were disproportionately affected by the volatile interest rate environment, while digital infrastructure momentum and gains from interest rate hedges partially offset value declines. source
• The Bank of England kept its bank rate at 3.75% through the third quarter of 2026. source
• The People’s Bank of China left its one-year prime loan rate unchanged at 3.0%. source